Biodiesel group De Beers on-selling unproven algae technology
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]
Reader Comments (Page 1 of 1)
M V Sharma 11:21PM (6/30/2008)
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.
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Roy Bauer 3:25AM (12/24/2008)
It is time for algae to take the place of oil. There are more benefits than consequences. Look at how far the compact disc has come. When algae oil takes the burden off of crude oil the sky will no longer be the limit. It will then be the universe.
Provided we no longer be so dependant on currency or gold. It should be based on adventure and curiosity. This is why when depression hits, movies and theaters still continue. The human person is always seeking enginuity and creativity. We must invent new fuels and chemicals to advance beyond this planet or we will become engulfed with doom and gloom.
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Howard Lee Harkness 10:14AM (4/11/2007)
"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.
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Tim 12:19PM (4/11/2007)
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!!!
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Mark 1:37PM (4/11/2007)
#2 - it isn't the same De Beers, as far as I can tell.
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frank78 1:33PM (4/11/2007)
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.
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Dallas Kachan 3:18PM (4/11/2007)
Expose on De Beers here: http://www.insidegreentech.com/node/987
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Tim 3:22PM (4/11/2007)
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.
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Tim 3:29PM (4/11/2007)
Dallas- Looks like Mr. De Beers may be part of "the family" after all.... Ouch!
Good researching! NEXT!
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