Biodiesel group De Beers on-selling unproven algae technology
Filed under: Biodiesel, Emerging Technologies, Etc., Manufacturing/Plants
U.S. biodiesel research company GreenFuel Technologies has licensed its process to produce biodiesel from algae to South African company De Beers Fuel fully two years before it will be ready for commercial application. That's not really so bad if De Beers want to be out in front and are willing to take a gamble on commercially unproven technology themselves. However, De Beers has already on-sold 27 franchises based on the technology along with 40 million shares to the public without even issuing a prospectus. At R6 million (US$842,000), the franchises don't come cheap and De Beers now has a backlog of 90 reactors that have been ordered based on guarantees that each will be capable of producing 38.4 million L / 10.1 million gallons of biodiesel per year
De Beers Fuel defends their enthusiastic resale of the technology saying that GreenFuel have conducted a trial run at the Redhawk Power Station in Arizona, plus the De Beers plants will be run on traditional oilseed feedstocks before swapping them over to algae oil within two years.
Analysis: GreenFuel's algae technology looks very promising but this is a dangerous game De Beers Fuel is playing. If it all comes unstuck it could seriously dent the credibility of the algae biodiesel industry which I'd hate to see. At the same time, I think the gold rush mentality of the investors who appear to be betting the farm on a technology that has barely made it out of the lab is sure to catch up with them.
Related:
[Source: Fin24.co.za via Oilgae]
London 2008: Honda OSM, a low-emission roadster concept
Spy Shots: Phoenix Motorcars SUV
Spy Shots: Honda Civic Hybrid facelift
Spy Shots: Honda's hybrid-only Prius fighter!
Downer of the Day: Chevy Beat not coming to U.S.![In the AutoblogGreen Garage: 2008 MINI Cooper D [w/VIDEO]](http://www.blogsmithmedia.com/www.autobloggreen.com/media/2008/07/mini-cooper-d-1280-02_opt_thumbnail.jpg)
In the AutoblogGreen Garage: 2008 MINI Cooper D [w/VIDEO]
Autoblog Green Podcast #24
Popular Mechanics to debunk the "run your car on water" myth
Reader Comments (Page 1 of 1)
4-11-2007 @ 10:14AM
Howard Lee Harkness said...
"If it all comes unstuck it could seriously dent the credibility of the algae biodiesel industry..."
Algae biodiesel will be economically viable or not. Either way, De Beers is going to find out, and that's a good thing. If the 'credibility' of the biodiesel industry is 'damaged' in the process, it just means that we need to look elsewhere. That how progress happens.
BTW, I'm betting on algae blowing all other biodiesel feedstocks completely away. Unless there is something dreadfully wrong with it that I don't know about, the numbers are just overwhelmingly in favor of algae.
I'm also rooting for butanol and batteries.
Ethanol is a Politically Correct but mediocre fuel, and hydrogen is stupidity. Neither will help us become independent of oil.
Reply
4-11-2007 @ 12:19PM
Tim said...
The ultra-wealthy De Beers mega-corporation can afford to make this technology work and become profitable. They know how to capitalize on diamond rushes and they are now participating in the new liquid gold rush in a big way. The fact that they chose algae biodiesel is exciting indeed. This development will greatly accelerate the algae biodiesel technology! Run Forrest, Run!!!
Reply
4-11-2007 @ 1:33PM
frank78 said...
only one way to see what works and what doesn't. Frankly, I'm glad to see this happening because even if there are a few bumps in the road along the way, the promise of this technology is so huge that the sooner, the better. I'm sure someone in the franchises will come up with an ultra-efficient way to make the biodiesel.
Even weighting the risk, the sooner the better.
The investors into this are taking a little bit of a gamble, but the potential payoff could be enormous. Good for them.
Reply
4-11-2007 @ 1:37PM
Mark said...
#2 - it isn't the same De Beers, as far as I can tell.
Reply
4-11-2007 @ 3:18PM
Dallas Kachan said...
Expose on De Beers here: http://www.insidegreentech.com/node/987
Reply
4-11-2007 @ 3:22PM
Tim said...
Mark- Maybe you’re right, however It’s easier to get girls if you look like Alec Baldwin even though you’re not a “Baldwin” and I’m sure that it’s easier to get financing or sell concepts when your name is De Beers in Africa or Rockefeller in New York even when you’re not part of “the family.”
Maybe I should change my last name to Cruise? Then again… never mind.
Reply
4-11-2007 @ 3:29PM
Tim said...
Dallas- Looks like Mr. De Beers may be part of "the family" after all.... Ouch!
Good researching! NEXT!
Reply
6-30-2008 @ 11:21PM
M V Sharma said...
Hello Friends of Green World, Is it possible to produce the Algae Bio diesel from the existing Sugar plants,by reducing the alcohol production. If such technology is feasible, the developing world will be less alcoholic and use this natural substitute to the sky rising petrol/diesel costs.
Reply