ExxonMobil has partnered with biotech company Synthetic Genomics Inc. (SGI) to research and develop next generation biofuels from photosynthetic algae.
ExxonMobil Research and Engineering Company has entered into a research and development alliance with SGI, a privately held company focused on developing genomic-driven solutions and founded by genome pioneer, Dr. J. Craig Venter, to develop advanced biofuels from photosynthetic algae that are compatible with today’s gasoline and diesel fuels.
The initiative would require ExxonMobil to spend more than $600 million, including $300 million in internal costs and potentially more than $300 million to SGI.
Thus far the oil supermajor has invested more than $1.5 billion over the past five years on activities that improve energy efficiency and reduce greenhouse gas emissions including technologies to improve automobile efficiency like tire liners, advanced fuel-economy engine oil, light-weight automobile plastics, and an improved lithium battery separator film for hybrid electric cars.
“The real challenge to creating a viable next generation biofuel is the ability to produce it in large volumes which will require significant advances in both science and engineering,” said Venter, CEO of SGI. "The alliance between SGI and ExxonMobil will bring together the complementary capabilities and expertise of both companies to develop innovative solutions that could lead to the large scale production of biofuel from algae.”
ExxonMobil’s engineering and scientific expertise will be utilized throughout the program, from the development of systems to increase the scale of algae production through the manufacturing of finished fuels.
“After considerable study, we have determined that the potential advantages and benefits of biofuel from algae could be significant. Among other advantages, readily available sunlight and carbon dioxide used to grow the photosynthetic algae could provide greenhouse gas mitigation benefits. Growing algae does not rely on fresh water and arable land otherwise used for food production. And lastly, algae have the potential to produce large volumes of oils that can be processed in existing refineries to manufacture fuels that are compatible with existing transportation technology and infrastructure,” added vice president of ExxonMobil’s Research and Engineering Company Dr. Emil Jacobs.
However, at the end of May, ExxonMobil’s shareholders had rejected CEO Rex Tillerson’s efforts to boost spending on renewable fuel sources. “Resolutions to do things like split the chairman and CEO jobs and pursue renewables are really just attempts by environmentalists and unions to gain control of the company to advance various public-policy goals,” said Steven Milloy managing partner at Potomac, Maryland-based Action Fund Management LLC, whose largest holding is ExxonMobil stock.
The algae sector is getting more attention recently as a top contender to what is now commonly referred to as a ‘third-generation’ biofuel. The reasoning could lie in the fact that previously, very little information was provided on algae used as a biofuel feedstock. As research increases, so does the level of interest and investment.
September saw the implementation of a new technology, BioGauge™, developed by International Energy, Inc. The technology is able to quickly determine the accumulation of bio-oil and other valuable compounds in microalgae, which is predicted to catapult the importance of algae in the biofuels commercial sector.
US-based bioenergy company OriginOil announced in May that it developed an extraction method to help transform algae into a competitive transport fuel. The company plans to commercialize the patent-pending solution for use by others in the algae industry.
In addition, cities are even jumping on board to utilize algae in order to meet energy demands. Electricity sources in Venice, Italy will be diversified by using algae in order to produce 50% of the city’s electricity needs. The city – famous for its canals – will turn its algae problem into a solution by utilizing the third generation biofuel by producing electricity from two types of algae that can be found regularly growing over the seaport and clinging to ships.