A California company is promising to deliver one billion gallons of algal biofuel a year by 2025, an aggressive goal for technology still in its infancy.

That’s the promise from Sapphire Energy, which is positioning itself to lead an emerging industry by working with airlines on test flights and ramping up its production facilities in New Mexico. If all goes as planned, the company says, it will be in the position to supply one million gallons of biofuel annually by 2011, 100 million gallons annually by 2018 and one billion gallons each year by 2025.

“Fuel from algae is not just a laboratory experiment or something to speculate on for years to come,” Dr Brian Goodall, a Sapphire vice president, told the New York Times. “We’ve worked tirelessly, and the technology is ready now.”

Two airlines have already made test flights using Sapphire’s algal fuel. In January, Continental airlines flew a 737-800 for two hours using a blend of 50-percent biofuel in one engine. The flight included a full-power takeoff and climb, cruise at 37,000 feet, descent, approach and landing and was considered a success. The second test took place on a Japan Airlines 747 powered by Pratt & Whitney engines, with a biofuel blend of camelina, jatropha, and algae.

Sapphire, which has drawn backing from the likes of Bill Gates and the Rockefeller family, isn’t shy about talking up the benefits of fuel made from algae, saying it delivers 10 to 100 times more energy per acre than corn-based ethanol, which has gone out of fashion because it’s derived from food crops. Algae also uses less water than corn and can be grown on non-arable land. Another big benefit: algae sucks up lots of CO2. According to the Biodiesel Times, algae-based biofuel is considered carbon neutral because CO2 generated in its use is offset by what’s consumed during production.

While Sapphire’s high-profile aviation tests have gotten the headlines, the company says that because its biofuel is a “drop in” fuel chemically identical to crude oil, it is compatible with anything on the road or in the air right now. It also plays nicely with existing refineries and pipelines. That’s another benefit over ethanol, which is corrosive and typically transported to terminals via truck or rail and then mixed with regular gasoline.

“We are 100-percent convinced that the only way to address climate and energy security is to use the same infrastructure we already have,” Sapphire’s Zenk said. Although Sapphire is confident it can hit its 2025 billion barrel a year target, there’s no guarantee that demand will match capacity. The aviation industry says it will be ready for large scale use of biofuels in three to five years, but certification of new aviation fuel is a long process. Another issue that could stall wider adoption is that algae fuels are not included in the US Renewable Fuel Standards Program, which dictates what types of alternative fuels can be mixed with gasoline to meet federal targets. Sapphire concedes that it will only make what it can sell.

“It will be market dependent – we’ll produce what our customers need,” the company told GreenAir online. Sapphire isn’t the only company with big algae projects in the works. Blue Marble Energy creates fuel using algae found in polluted waters while a startup called Live Fuels is attempting to develop a green crude that can be fed directly into the US’s existing refinery system. San Francisco-based Solazyme has signed a big deal with Chevron.

There are plenty of companies competing to come up with the most efficient and affordable production process. The question is whether there will be buyers when the biofuel starts to flow.

Via: Wired