Carbon Trust launches world’s biggest public fund for ‘green oil’

The project called the Algae Biofuels Challenge is the biggest one of its kind in the world and the most ambitious. It's stated mission is “to commercialise the use of algae biofuel as an alternative to fossil-based oil by 2020”. 

The move highlights the urgency for the UK to develop carbon neutral fuels if it is to meet its target to reduce greenhouse gas emissions by 80 per cent by 2050.

Transport accounts for one-quarter of the UK's carbon emissions and is growing at a faster rate then any other sector.

“We must find a cost-effective and sustainable alternative to oil for our cars and planes if we are to deliver the deep cuts in carbon emissions necessary to tackle climate change,” said Dr Mark Williamson, Innovations director at the Carbon Trust. “Algae could provide a significant part of the answer and represents a multi-billion pound opportunity. Through the Algae Biofuels Challenge, we will be combining the UK’s undoubted expertise in the area with our unique knowledge and experience of commercialising early stage low carbon technologies, to give us the best possible chance of successfully producing cost-competitive algal biofuel at scale.”

The Carbon Trust is looking for cutting edge expertise from algae specialists in the UK to come up with large-scale, cost effective solutions for second-generation algae-based biofuels.

Algae can be grown on non-arable land using seawater or wastewater. This is considered to be environmentally, ecologically and socially more desirable than biofuels made from food crops, which have been blamed for rising food prices.

Moreover, if successful, the Carbon Trust says algae could deliver six to 10 times more energy per hectare than conventional cropland biofuels, whilst reducing carbon emissions by up to 80 per cent relative to fossil fuels.

Globally, initial forecasts suggest that algae-based biofuels could replace over 70 billion litres of fossil-derived fuels used annually in road transport and aviation by 2030 – equivalent to 12 per cent of annual global jet fuel consumption or six per cent of road transport diesel. This would equate to an annual carbon saving of over 160 million tonnes of CO2 globally and a market value of over £15 billion.

The Algae Biofuels Challenge aims to develop algae biofuels commercially in two key phases. 

Phase One, which will have total budget of between £3 and £6 million, will provide grant funding for research addressing five specific areas:

•    Isolation and screening of algae strains suitable for open pond mass culture
•    Maximising solar conversion efficiency in mass culture
•    Achieving both high oil content and high productivity in mass culture
•    Sustained algae cultivation in open ponds (resistance to competing organisms, predators and diseases)
•    Design and engineering of cost effective mass culture systems

Phase Two will focus on scaling up and integrating the processes developed in Phase One, It will run over five years and will involve the construction and operation of a multi-hectare test pond, probably abroad to avoid any unnecessary delays in eventual commercialisation of algae biofuels. Tropical and sub-tropical climates are more suited to the development of algae.

Commenting on the Algae Biofuels Challenge, Transport Minister, Andrew Adonis said: “Everyone agrees that to tackle climate change we must develop new and cleaner fuels. But we are clear that biofuels will only have a role to play in this if they are sustainably produced.
 
“This project demonstrates our commitment to ensuring that second generation biofuels are truly sustainable – and will further our understanding of the potential for microalgae to be refined for use in renewable transport fuel development, to help reduce carbon dioxide emissions.”