Exxon says growing its algae biofuels
program
Jul 14, 2010
By Alyson Zepeda
HOUSTON, July 14 (Reuters) - Exxon Mobil Corp (XOM.N) said on Wednesday
it opened a greenhouse facility to grow and test algae, the next step
for its nascent biofuels program.
Exxon said last year it would invest $600 million over the next five to
six years attempting to develop biofuel from algae. If it met research
goals, Exxon said it would spend more than originally budgeted in the
next decade, $300 million of which would be allocated to its partner
Synthetic Genomics Inc.
The project would cost billions to fully develop, Exxon said.
Researchers from Exxon and Synthetic Genomics will use the new facility
to test whether large-scale quantities of affordable fuel can be
produced from algae.
"It's one step along a pretty long path, but it's an important step,"
Emil Jacobs, vice president of research and development at Exxon Mobil,
said at a teleconference held at Synthetic Genomics headquarters in La
Jolla, California.
Should all go as planned, an outdoor test facility will be opened in the
middle of next year, the companies said.
Exxon's biofuel investment represents a tiny portion of the oil
company's spending, which is set for $32 billion for just this year.
That figure includes the budget of XTO Energy Inc, a natural gas company
that the oil company bought.
Synthetic Genomics, headed by entrepreneurial scientist Craig Venter, is
a privately held firm focusing on gene-based research.
Some strains of algae produce oil that can be converted into diesel and
other fuels. To make biofuel from algae, sunlight and a large source of
carbon dioxide would be needed.
Venter said thousands of natural strains of algae are being screened for
quantities that would make commercial production economical, but the
sheer number of requirements means at some stage chosen strains will
probably need genetic modification.
"There's literally hundreds of parameters we are tracking in these
cells," he said.
Beyond identifying a strain, separating the algae from water and
hydrocarbons from the algae in a cost-effective way is the next biggest
challenge, said Mike Harold, professor of chemical engineering at the
University of Houston. After that, he said, processes already exist to
convert the product to a usable fuel.
"Those facilities are available in a host of companies and it would just
be replacing soybean oil and corn oil and other vegetable oils with
algae oil," Harold said.
Exxon has said it could eventually source its carbon dioxide for the
research product from power plants, natural production or refineries.
The greenhouse will give researchers the chance to test lab theories in
an environment with natural variables, but Jacobs emphasized that safety
and containment is also a very important part of the new facility.
San Diego Mayor Jerry Sanders said, "Thank you for ensuring that we
won't have revenge of the pond scum flowing into our community."
Shares of Exxon closed down 16 cents at $59.26 on the New York Stock
Exchange. (Additional reporting by Anna Driver in Houston; Editing by
Robert MacMillan, Gerald E. McCormick, Gary Hill)
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