Mike Pelly imagines a world where cars run on diesel made from oil pressed from vast fields of algae.
Sounds crazy, I know. But Pelly, owner of Olympia Green Fuels, knows a few things you don't.
For example, Pelly knows an acre of algae can produce 5,000 to 20,000 gallons of oil per year, which can be converted into diesel biofuel. That beats out every other proposed alternative oil source currently in use. Canola produces just 200 gallons per acre per year. Soybeans produce a paltry 100 gallons per acre per year. Someday, hopefully sooner rather than later, there will be algae farms that produce millions of gallons of oil that can be converted into fuel. Boeing and other aircraft companies have already flown planes on fuel made from algae. Research is underway in the private sector on how to make more, but no one has figured out how to make it profitable yet. So, the bad news is you'll have to wait. The U.S. Department of Energy, meanwhile, reports that converting algae into biodiesel may be the only way to produce enough fuel to replace current world diesel usage.
In the meantime, Pelly is making the machinery that turns other sources of oil into something you can put in your truck.
The Pelly Model A5 Biodiesel Processor is made in Olympia. It's about as big as a refrigerator and comes with a tank farm capable of holding a lot of biodiesel. A 100,000 gallon per year setup costs about $50,000 and will convert oil from a range of sources into diesel fit for any truck. Pelly says the A5 is easy, safe and predictable to operate as well as inexpensive to clean and service. Pelly gets most of the oil he uses from restaurants. Restaurants in the United States dispose of an estimated three billion gallons of used fryer vegetable oil a year. That equates to enough oil to generate about five percent of the country's annual diesel fuel needs, which is about 60 billion gallons a year. Other sources include fish processors, rendering plants, and farms that use huge presses to extract oil from vegetable matter.
"We've always used fryer grease," says Pelly.
The biodiesel movement has some solid science behind it. Pelly's Web site is full of information that makes you wonder why more people aren't using the stuff. (Hint: It has something to do with huge companies making ridiculous amounts of money selling fossil fuels and investing in oil futures.)
For example, to drill, pump, ship, refine, and ship again one gallon of fossil diesel or gasoline, it takes at least an additional 1.2 gallons of fuel. It takes about a third of a gallon to get a gallon of biodiesel to the pump. Biodiesel is easier on engines because it contains no sulfur. Toxic tailpipe emissions decrease dramatically when vehicles run on biodiesel.
Pelly's product, meanwhile - the Model A5 Biodiesel Processor - is aimed at small-scale producers and fuel co-ops, which are popping up all over the country.
By the time we figure out how to grow cheap algae, Pelly may have already retired.
[Olympia Green Fuels LLC., 1001 Cooper Pt. Rd. SW, Suite 140-243, Olympia, olympiagreenfuels.com]
Comments for "Stock tip: algae futures" (4)
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Clinton said on Apr. 22, 2010 at 4:43pm
AlgaeVenture Systems philosophy utilizes waste energies from collocated facilities including heat, with an additional requirement for suitable water-cooling resources (geothermal, river, or body of water), CO2 waste gas, and nutrient/organic wastes. The targeted industries are power generation, wastewater, livestock, food waste, biomass waste, landfill, and various industrial concerns. The resulting systems will provide resource conservation, improved water and air quality while producing large quantities of biomass for utilization for fuel, feed, food, fertilizer, and other advanced materials or products. This integrated strategy will result in a leap forward for sustainability strategies, which can be implemented by a variety of concerns while lowering the floor to capital & expense viability.
Univenture firmly believes the primary path forward for fuels from algae will require capital cost sharing with collocated facilities along with an evolutionary path to the profit floor of fuel. Justification of capital cost share comes from cleaner water and air through a variety of considerations, including: ecological, social, energy policies, and national security justifications. Solar energy is one contributing direct energy source, not the sole source other organic carbon sources can provide massive additional energy to obtain lipids. Enclosed systems offer tremendous advantages for control, optimization, continual processing, and resource (water) conservation. These philosophies allow for algae to be grown for fuel and other products economically and virtually anywhere the natural and industrial resources can be utilized in an economically balanced combination.
peter said on Apr. 29, 2010 at 3:22pm
Right on Mike, you are the future
Karen said on May. 21, 2010 at 10:13pm
Interesting Mike, when we drove through Colorado last year in our diesel van, we stopped to fill up with bio diesel at a station to find it was no longer selling it. They were expecting to have bio diesel manufactured from Algae feed stock later in the year. Apparently Colorado State University would be producing it. Don't know if it came to fruition as we haven't been back.
Theodore sturos said on Jul. 25, 2010 at 11:42am
Two companies contributing to the advancement of algae oil, reduction of carbon emissions and 3rd generation bio fuels. You can copy paste any where you like.
 Proof that Origin Oil’s and MBD Energy technology works?
Mbd energy is origin oils first customer. The two are collaborating to capture carbon from existing power plants and produce oil. If successful profitability is inevitable. Â The oil produced will be able to take part in fueling our nations energy needs.
Below is a quote and link explaining their agreement.Â
Article published may 11
 Â
http://www.originoil.com/company-news/originoil-announces-its-first-customer.html
 †In the initial phase, OriginOil will equip MBD Energy’s research and development facility at James Cook University in Queensland, Australia, where testing will take place. The two companies agreed that, subject to the success of the initial test phase, MBD will purchase significantly larger feeding and OriginOil extraction units to serve facilities planned for its three Algal Synthesizer power station projects in Australia: Tarong Energy (Queensland), Loy YangX A (Victoria) and Eraring energy(New South Wales).â€
(If trials work, mbd will be fully financially committed to the  purchasing and production of this technology.)
This article published by James Cook university allows potential investors and thosfogng origin oil and mbd energy to conclude that the tests were a success and that mbd energy is going to be purchasing larger more expensive units from Origin Oil. The link  below followed by an important quote will explain my claims.
article from july 9thÂ
http://www.jcu.edu.au/blogs/atjcu/entry/innovative_algae_to_fuel_project
“Senator Carr visited the MBD-JCU research facility at the Townsville campus and inspected the facility â€" a pilot project that is aimed at commercialising the development of Bio Carbon and Capture Storage technology. The process consumes large quantities of greenhouse gases while producing low cost bio-oil and animal feedstock†after the inspection the Aussie government grant MBD energy with a 5 million dollar grant.
(the research facility at the Townsville campus was an integration of Mbd and Originoil’s technology.)
Summary-First, Origin Oil and MBD energy integrated and tested each others technology at James Cook university. Â The trials were successful. Â They called in the Aussie government to evaluate. The Aussie government evaluated the facility and their successes with government funding. Â Â Â
You may be wondering-
 If this is true why hasn’t Origin Oil reported it?
 This is because MBD Energy is a private company and the two companies have most likely signed to a non disclosure agreement. Meaning origin oil by law is not able to publicly report the process of the project till time stated in contract.
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