Wednesday, July 15, 2009

Nine Hundred Pound Gorilla Moves on Algae


Exxon makes first big investment in biofuels

By: Associated Press - Texarkana Gazette
Published: 07/15/2009

HOUSTON—Exxon Mobil Corp. said Tuesday it will make its first major investment in greenhouse-gas reducing biofuels in a $600 million partnership with J. Craig Venter, Ph.D's biotech company Synthetic Genomics Inc. to develop transportation fuels from algae.

Despite record-breaking profits in recent years, the oil and gas giant has been criticized by environmental groups, members of Congress and even shareholders for not spending enough to explore alternative energy options.

One of the company’s requirements was finding a biofuel source that could be produced on a large scale. It says photosynthetic algae appears to be a viable, long-term candidate. If the alliance is successful, pumping algae-based gasoline at Exxon service stations is still several years away and will mean additional, multibillion-dollar investments for mass production.

“This is not going to be easy, and there are no guarantees of success,” Emil Jacobs, a vice president at Exxon Mobil Research and Engineering Co., said in an interview with The Associated Press. “But we’re combining Exxon Mobil’s technical and financial strength with a leader in bioscientific genomics.”

Jacobs said the project involves three critical steps: identifying algae strains that can produce suitable types of oil quickly and at low costs, determining the best way to grow the algae and developing systems to harvest enough for commercial purposes.

Besides the potential for large-scale production, algae has other benefits, Jacobs said. It can be grown using land and water unsuitable for other crop and food production; it consumes carbon dioxide, the greenhouse gas blamed for climate change; and it can produce an oil with molecular structures similar to the petroleum products—gasoline, diesel, jet fuel—Exxon already makes.

Balance of article: Texarkana Gazette

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