The International Energy Agency estimates that the majority of the world’s energy need has been met using oil for roughly the past 40 years.
Our interest in the oil consumption. This slide further segregates the sources of oil demand. The largest and most rapidly increasing segment of global oil consumption is transportation. Transportation includes the trucks, trains, and ships that carry global commerce. It includes personal vehicles like cars, motor bikes, and jet ski’s people use for fun or transit. It also includes aviation uses, which carries both freight and people.
Here we break down the output from refinery operations into major categories. The motor gasoline and aviation fuel categories are self-explanatory. Worth noting is that the aviation fuels category grew at the fastest rate (in percentage terms) increasing 50% beyond the 1973 numbers. The category described as middle distillates is the category containing diesel fuel. Trucks, trains, ocean vessels, and in many countries, auto’s are fueled by diesel. Note this category grew by roughly 570 Mt in 34 years and represents roughly one third of all refinery production. The heavy oils category describes truly heavy fuels, those being molasses-like in viscosity. These fuels must be heated to flow and are therefore used in continuously operating equipment such as ocean freight or power plants.
Biofuel offers some differentiation in the transportation fuel market. A significant amount of interest stems from the ability to reduce the amount of carbon dioxide put into the atmosphere. Biofuel production captures carbon from the atmosphere while growing, so that once converted and burned, it is possible to have a net reduction in CO2. The energy needed to produce fuel can be reduced, in particular through bio-methane, by collection from landfills, dairy farms, and other sources. A significant benefit to biofuels such as ethanol and biodiesel is that they can essentially be dropped into the existing distribution system. Gasoline can be blended with up to 10% ethanol in modern vehicles, with more vehicles being offered with E85 (85% ethanol) compatible engine systems. (See next slide for ethanol issues.) Biodiesel can be blended or used exclusively. Energy independence is seen as an incentive in oil importing countries. On one hand this would provide a domestic source of energy, which is a strategic need. Foreign policy may also change. However, shifting dollars away from oil producing countries may destabilize them and will certainly cost influence. Crude will eventually run out, and another source will be needed. Biofuel provides a renewable source. The biggest problem with many biofuels is that they grow crops. These crops, such as corn for ethanol, soybeans for biodiesel, or switch grass and other plant matter crops displace food crops. This raises the cost of food, potentially sending people into starvation so the West can drive SUV’s. In some cases, forests (net carbon sinks) have been burned to open land for additional crops. Pressure to convert land to agriculture would increase with reliance on food crops for fuel. Finally, burning the fuel still produces CO2, although the net addition of CO2 to the atmosphere can be less than with oil.
https://www.mckinseyquarterly.com/wrapper.aspx?ar=2466&story=true&url=http%3a%2f%2fwww.mckinseyquarterly.com%2fThe_ethanol_challenge_for_the_United_States_2466%3fpagenum%3d1%23interactive&pgn=etch09_exhibit While 10% ethanol is permissible in most of the U.S. the actual levels used tend to be less. The reason is that the U.S. lacks an ethanol infrastructure. The following slide outlines the infrastructure requirements and costs.
https://www.mckinseyquarterly.com/wrapper.aspx?ar=2466&story=true&url=http%3a%2f%2fwww.mckinseyquarterly.com%2fThe_ethanol_challenge_for_the_United_States_2466%3fpagenum%3d1%23interactive&pgn=etch09_exhibit $12-18B dollars to make ethanol fuels beyond a 10% blend feasible throughout the U.S.
Video intro possibly
There are two main types of Algae growth systems. The first is an open system, which uses large open ponds to grow algae. The main design parameters are algae, light, nutrients and water. The algae grown in open systems is usually natural algae native to the local area rather than genetically modified algae since there are too many variables from contamination to grow foreign algae. The algae used is native to that region and therefore, can handle variables like changing weather seasons and seasonal temperatures. Also, since the algae is open to the environment, there is a risk of contamination from outside algae or organisms. Also, the large amount of water need for a open system may defer from other consumers of water like irrigation and homes. The light in an open system is all natural illumination from the sun. One advantage is that the algae is not dependant on electricity to produce lights and have a greater surface area to sunlight, but dependant on climatic, seasonal, regional and mutual shading from other algae. The nutrients algae rely on include nitrogen, phosphorous and carbon dioxide. One advantage of using an open pond is that algae can use wastewater that is rich in nitrogen, phosphorus and other nutrients to grow faster versus having to add them manually. This lowers the cost of algae production since they are cleaning the wastewater and producing faster algae. One disadvantage is that the wastewater cannot be controlled and may control things harmful to the algae. Open systems require large amounts of water, which are usually found from reclamation of rain or wastewater treatment. This makes certain areas that have a lack of excess water, such as American Southwest, unable to sustain open systems since they have a lack of water for their own consumption. Also, the large amount of water must be contained in land that must be converted into ponds for algae growth. Ryan, Catie. "Cultivating Clean Energy: The Promise of Algae Biofuels." Natural Resources Defense Council (2009).
Closed Bioreactors are enclosed structures used to grow algae under controlled conditions not available in open systems. The main design parameters are algae, light, nutrients and water. The algae used is native to that region and therefore, can handle variables like changing weather seasons and seasonal temperatures. Also, since the algae is open to the environment, there is a risk of contamination from outside algae or organisms. Also, the large amount of water need for a open system may defer from other consumers of water like irrigation and homes. The light in an closed system is usually generated partially or totally from electric lights rather than natural illumination from the sun. One advantage is that the algae is not dependant on climatic, seasonal and regional effects. Instead, dependent on electricity requires access to secure power plants and may be environmental unfriendly. The nutrients algae rely on include nitrogen, phosphorous and carbon dioxide. One disadvantage of using a closed system is that nutrients and CO 2 that are required by algae need to be artificially supplied. Also, photosynthesis of algae causing oxygen to buildup, which must be removed using a degasification system. Closed systems require large amounts of water, which usually require the water to be sterilized to prevent contamination. Unlike an open system, this prevents untreated water from being used. One gain is a closed system can control the water temperature to maximize algae growth year round. Ryan, Catie. "Cultivating Clean Energy: The Promise of Algae Biofuels." Natural Resources Defense Council (2009).
Algae used in biofuel production usually comes three main sources: purchased from private culture collections, grown in natural water bodies or genetically engineered for desired characteristics. Companies are forming that do not process algae, rather focus on growing algae that is sold to refining companies for processing. This solves the issue with algae in areas without water sources, but required the algae transported to another location. Most algae in natural water bodies are nuisance algae that forms naturally. This is limited in scaling, but cost effective since the algae production cost is zero. Algal biotech firms have a databank of algae strains with their pertinent characteristics that they can license patents or create new customize algae strains based on customer needs. Levine, R., A. Oberlin, and P. Adriaens. &quot;A Value Chain and Life-Cycle Assessment Approach to Identify Technological Innovation Opportunities in Algae Biodiesel.&quot; University of Michigan. Web. <http://www-personal.umich.edu/~adriaens/Site/Welcome_files/Algae%20biodiesel%20value%20chain.pdf>.
The marketing for algae based biofuels heavily leverages the fact that algae does not require food such as corn and sugarcane. Ethanol is commonly blamed for the increase in food costs as farmers could make more money selling crops to make ethanol versus selling for food consumption. Algenol Biofuels Inc. is also marketing itself as a domestic fuel producer to counter US dependence on foreign oil. In studies with J.B. Hunt Trucking Company, algae fuel blend from California based startup SunEco reduced emissions by 82% without any loss of power. The distribution of algae fuel will be the same as fossil fuels with consumers going to their local refueling station. Unlike ethanol, algae fuel does not require special automobile engine that support flex-fuel. The most likely consumers of algae fuel will be biodiesel vehicles and aircraft receiving algae based jet fuel. The US military has funded extended research into algae fuel and its use with aircraft. &quot;Algenol Biofuels Inc.&quot; Algenol Biofuels - Harnessing the Sun to Fuel the World . Web. <http://www.algenolbiofuels.com/default.html>. Mollman, Steve. &quot;'Green goo' biofuel gets a boost - CNN.com.&quot; CNN.com International - Breaking, World, Business, Sports, Entertainment and Video News . 24 Aug. 2009. Web. 04 Feb. 2010. <http://edition.cnn.com/2009/TECH/science/08/21/eco.algaebiofuel/index.html>. DLOUHY, JENNIFER A. &quot;Obama unveils plan for alternative fuels.“ Houston Chronicle, 3 Feb. 2010. Web. 03 Feb. 2010. <http://www.chron.com/disp/story.mpl/business/6849995.html>.
Many State and Federal governments require fuel blending with a certain percentage of biofuel, regardless of cost. Currently, ethanol is the most popular, but algae could gain large market share. Starting in 2010, EPA renewable fuel standard requires biofuels make up 8.25% (13 billion gallons) of gasoline sales. From 2004-2009, the US government supplied a $1 per gallon blenders’ tax credit for biodiesel. Currently, the House of Representatives has passed an extension of the tax credit, but it has yet to pass the Senate. Similar to the US, European Union and many other countries also gives tax exceptions to biofuel. DLOUHY, JENNIFER A. &quot;Obama unveils plan for alternative fuels.“ Houston Chronicle, 3 Feb. 2010. Web. 03 Feb. 2010. <http://www.chron.com/disp/story.mpl/business/6849995.html>. Finley, Russ. &quot;US Biodiesel: The Never-ending Subsidy Story.&quot; Energy Tribune, 3 Feb. 2010. Web. 03 Feb. 2010. <http://www.energytribune.com/articles.cfm?aid=3087>.
Open and closed pools Money needed regardless of choice Exxon announced last month that it is plunking down $600 million for a partnership with Synthetic Genomics, and now BP is joining the algae fuel club with a $10 million investment in Market Biosciences. If new, would need land, then build facilities, open is preferred for the environment After that the algae would have to be introduced and grown until used to create biofuel
Most algae farms built the same Open pool Central hub for maintenance and extraction Location preferable in environment that would be water and algae friendly, cant really have it in a desert Oregon, Florida, Hawaii and such for America
Uses existing technology with cars Goes through the entire process as shown
https://www.mckinseyquarterly.com/Energy_Resources_Materials/Strategy_Analysis/Betting_on_biofuels_1992#foot1 Betting on biofuels • MAY 2007 • William K. Caesar, Jens Riese, and Thomas Seitz McKinsey sites several issues confronting the biofuel industry. “ variables that directly influence the profitability and environmental impact of biofuels: the cost and availability of feedstock, government regulation, and conversion technologies. ” The feedstock is 50-80% of the cost of biofuel. The right combination of land, raw materials (water, algae, heat and other energies, etc.), and extraction yield are critical to profitability. Government regulation (carbon trading, caps, blending requirements, etc.) and subsidies are all factors influencing the costs. With major investments currently underway, companies are understandably secretive about their technologies. Biofuel will be highly dependent on the site used for production. The raw land is but one factor. Situation near power plants, treatment plants, distribution systems, storage, refining, and the market demand will all determine the viability of the technology.