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Green oil? Phillips 66 strikes a deal to develop it
Fuel Fix ^ | December 10, 2013 | Collin Eaton

Posted on 12/11/2013 5:05:41 AM PST by thackney

A small San Diego company is teaming up with one of the nation’s largest oil refiners to bring an algae-based crude closer to market.

It’s called green crude — even though it’s not exactly green in color when it’s ready to hit the refineries. Sapphire Energy, the six-year-old company that makes the renewable crude, harvests algae biomass from photosynthetic microorganisms at a “crude farm” in New Mexico and turns it into oil. The company wants to make 1 billion gallons of the stuff every year by 2025.

Sapphire said Tuesday it has signed a contract with Houston refining giant Phillips 66 to blend green crude with regular crude in products like gasoline, diesel and jet fuel. They’re not going to sell it, yet. First, they’re going to study it further in a Phillips 66 lab in Oklahoma.

The two companies hope to get the crude certified under Environmental Protection Agency fuel standards next year, which would enable the crude to be churned at traditional refineries, said Tim Zenk, vice president of corporate affairs for Sapphire, in an interview Tuesday.

“We’re on our way,” he said. The company said it expects the green crude to be ready to hit the market in 2018.

There are other renewable crude oils made from algae heading toward commercialization, but Zenk said Sapphire’s could be the only one that harvests entire algae and cyanobacteria cells — several other companies only extract lipids in the microorganisms. As for its color, Sapphire’s green crude is usually black, but it can turn green before chlorophyll is removed from the oil.

Earlier this year, Sapphire struck a deal with San Antonio refiner Tesoro Corp. to turn the crude into diesel. The two major contracts show “increasing momentum for algae fuel as a viable crude oil alternative, and significant interest by refiners to have new and better options to meet” the federal Renewable Fuel Standard, said Cynthia Warner, chief executive at Sapphire, in a written statement.


TOPICS: News/Current Events; US: New Mexico
KEYWORDS: algae; energy; oil

1 posted on 12/11/2013 5:05:41 AM PST by thackney
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To: thackney

It doesn’t matter if they make it from air. The left does not want people to have the multiple opportunities to prosper, innovate and act freely that plentiful and inexpensive supplies of energy provide. They will always find a reason why new sources are not suitable and should be restricted.


2 posted on 12/11/2013 5:13:56 AM PST by Dahoser (Separation of church and state? No, we need separation of media and state.)
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To: thackney

Good luck. I’m sure this will endanger the six-toed white grasshopper or something.


3 posted on 12/11/2013 5:16:14 AM PST by Extremely Extreme Extremist (Governor Sarah Heath Palin for President of the United States in 2016)
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To: Dahoser

They even market the idea that this creates fuel by removing C02 from the atmosphere. In reality, it is a solar energy transportation fuel plant.


4 posted on 12/11/2013 5:18:45 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

Are they able to make it commercially now?


5 posted on 12/11/2013 5:18:52 AM PST by dangerdoc (see post #6)
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To: thackney

What’s the sulfur content?


6 posted on 12/11/2013 5:19:37 AM PST by Paladin2
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To: Dahoser

You’re correct. The Left is never satisfied. Remember when they demanded that we stop using paper bags? Now they are demanding that we stop using plastic bags.


7 posted on 12/11/2013 5:19:45 AM PST by dcbeall
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To: thackney

Green oil

8 posted on 12/11/2013 5:21:52 AM PST by from occupied ga (Your government is your most dangerous enemy)
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To: Paladin2
It doesn't matter what the sulfur content is because it is "green". Hell you are even allowed to kill bald eagles with windmills.

Just as a point of reference, 1 billion gallons is about 23.8 million barrels. This represents about a 1 1/2 days or US oil use.

9 posted on 12/11/2013 5:37:56 AM PST by 11th Commandment (http://www.thirty-thousand.org/)
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To: Paladin2

I believe almost no sulfur in the product. I haven’t found an assay of their oil yet. Below are some related discusion/links.

- - - - - - -

http://www.sapphireenergy.com/search-results-detail/423519-algae-could-solve-world-s-fuel-crisis

Dozens of varieties of the microorganisms, also known as cyanobacteria, bob up and down in bulbous beakers at Joule. A green brew fills small photobioreactors, which are used to test the blue algae under various environmental conditions. “Here we simulate for example the day-and-night rhythm of Texas,” says Robinson, explaining one of the experiments. The company has a pilot plant in Texas.

The program is as complex as it is costly. Nevertheless, success appears to be proving the genetic engineers right. The microbiologists at Joule have created blue algae strains that pump so-called alkanes outward through their membranes. Alkanes are energy-rich hydrocarbons contained in diesel fuel. “You have to persuade the cell that it stops growing and makes the product of interest and does it continuously,” Robinson explains. In contrast to ethanol, the end product is not a low-quality fuel, but a highly pure product that contains no sulfur or benzene. “You could put our product in your car,” says Robinson.

- - - - - - - -

http://www.sapphireenergy.com/search-results-detail/394662-how-algae-could-change-your-world

According to Jason Pyle, Sapphire’s CEO, the New Mexico algae ponds will be built on unproductive salt-saturated former agricultural land. “The land grew cotton 15 years ago, but the growing salt content gradually made that impossible.” Pyle said that “green crude oil” from algae looks very similar to petroleum, and is low in sulfur and heavy metals. He thinks that algae can replace up to 10 percent of our current transportation needs. The company’s goal is to produce fuel for $70 to $80 a barrel, which is of course cheaper than petroleum oil right now.

- - - - - - - - - - - -

http://www.sapphireenergy.com/search-results-detail/235025-algae-industry-magazine-interview-sapphire-energy-s

What percentage of that biomass becomes fuel, and what percentage is left over for other purposes, and what are those purposes?

Back to our scheme being wholly focused on fuel, we have no other purposes. The goal of our entire process is to have no residual of any sort other than liquid oil. We can’t attain that, because then we’d have a perfect process, but we’ve gotten very close. The idea is that when you harvest the biomass, you extract the liquids, which can be as high as 50%, and then you recycle all of the 50% residual.

Into what?

Back into the growth system.

Really? Not feed, not fertilizer?

No other product leaving the site except for fuel.

So, as nutrient for the next generations?

Exactly. If you look at where you lose a huge amount of money in these processes, it’s in nitrogen, phosphorus and sulfur exiting the plant, because, one way or another, it’s a plant and they have to grow. One of the things that we’ve focused highly on is how we recover all of the nitrogen, phosphorus and sulfur back into the system. And that is a really important feature of lowering cost and also being sustainable.

Is there anything else in the biomass that accumulates?

Inevitably you end up in a situation where you have to do what the engineers refer to as blowdown, because some amount of solid stuff is accumulating — at a very, very low percentage, less than one percent in our case. But over long periods of time that becomes significant. Then you have to have a means to handle that. In our case, we model in our economics that we would landfill it. It’s nontoxic and it can be used for land reclamation. But we model it as a cost, not as a profit center.


10 posted on 12/11/2013 5:38:55 AM PST by thackney (life is fragile, handle with prayer)
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To: dangerdoc

Tessoro was their first commercial customer back in March.
http://fuelfix.com/blog/2013/03/21/tesoro-to-buy-green-crude-oil/

They are a private company so the finances are difficult to find.


11 posted on 12/11/2013 5:42:45 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney
Years ago, I bought a 50,000 bbl tanker load of green resid from one of the refineries at Sarnia. I thought we were going to have to evacuate the Superior, WI waterfront...that stuff was very gassy.
12 posted on 12/11/2013 5:44:19 AM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
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To: thackney
“Giving society cheap, abundant energy . . . would be the equivalent of giving an idiot child a machine gun.”

~Socialist Enviro-Nazi Paul Ehrlich

Other gems from the same totalitarian liar:

“The Population of the U.S. will shrink from 250 million to about 22.5 million before 1999 because of famine and global warming.”

“Falling temperatures will cause the ice caps to sink into the ocean, producing] a global tidal wave that could wipe out a substantial portion of mankind, and the sea level could rise 60 to 100 feet.”

13 posted on 12/11/2013 5:46:12 AM PST by PATRIOT1876
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To: Extremely Extreme Extremist
*Good luck. I’m sure this will endanger the six-toed white grasshopper or something.*

“NOOOOOOOOOO!!!!

You cannot justify the genocide of billions of algae!”

~Future statement from knucklehead at the EPA

14 posted on 12/11/2013 5:47:49 AM PST by PATRIOT1876
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To: Eric in the Ozarks

I used to work with a Coker engineering firm. We evaluated taking in algae biomass as feedstock and found it would work fairly well.


15 posted on 12/11/2013 5:50:18 AM PST by thackney (life is fragile, handle with prayer)
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To: 11th Commandment

I only use ~5 gal of Diesel most weeks. All I need is ~250gal of inexpensive Diesel/year. I can take delivery 2x per year and avoid going to the “gas” station.


16 posted on 12/11/2013 5:59:56 AM PST by Paladin2
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To: thackney

Is Sapphire Energy a public traded company?


17 posted on 12/11/2013 6:06:13 AM PST by woodbutcher1963
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To: thackney

This would make more sense than burning food to run cars.

But we’ll see —


18 posted on 12/11/2013 6:07:08 AM PST by Uncle Chip
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To: woodbutcher1963

No, private.


19 posted on 12/11/2013 6:09:58 AM PST by thackney (life is fragile, handle with prayer)
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To: Uncle Chip

The technology is fine. Doing it without tax payer subsidies is what is important to me.


20 posted on 12/11/2013 6:10:35 AM PST by thackney (life is fragile, handle with prayer)
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To: 11th Commandment
Just as a point of reference, 1 billion gallons is about 23.8 million barrels. This represents about a 1 1/2 days or US oil use.

Ummm, for a start-up to grab 0.5% of the entire US oil market in under two decades is amazing (if they hit their goal and your numbers are correct). On top of that, if they have that amazing success, hundreds of others will come along to try to copy it. I could be wondrous news...

but there are always those who disdained the invention of the automobile, because it couldn't do 90 mph and cost less than $5 in its first decade of production.

21 posted on 12/11/2013 6:12:58 AM PST by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: thackney

The technology has already been subsidized — at the university level. A lot of universities were given grants to study it — like University of Missouri.

But we can expect to find opposition from the corn growers who would rather send taco and livestock prices through the roof than find some useage for all that useless swampland.


22 posted on 12/11/2013 6:19:51 AM PST by Uncle Chip
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To: Teacher317

Good Luck to this company, I appreciate capitalism. The article was very silent on the cost of production, water use in a dessert environment, land use... it is hard to tell if this technology has a future...


23 posted on 12/11/2013 6:26:13 AM PST by 11th Commandment (http://www.thirty-thousand.org/)
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To: PATRIOT1876
Paul Ehrlich is responsible for the loss of one of my "friends."

True story. I worked with an ex-academic liberal - guy bounced from low level college teaching job to low level college teaching job and finally ran out of options. I hired him to code CICS, because oddly enough he did have one useful skill - COBOL, We got along OK. He moved to Athens GA, but we used to keep up with occasional emails. Then one day I emailed him the comment that although Paul Ehrlich had been wrong about everything he ever wrote, he still had a following of deranged individuals. (knowing that my "friend" secretly thought of Ehrlich as a prophet although he never actually mentioned it) He emailed back asking me never to write to him again. I guess I was a blasphemer.

24 posted on 12/11/2013 6:28:09 AM PST by from occupied ga (Your government is your most dangerous enemy)
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To: thackney
Actually, for large scale algae farming, the CO2 requirement would be so large, that these farms would be required to be co-generation projects... where CO2 capture from power generation is repurposed to grow the algae.

My old man has been following Origin Oil for quite some time now, actually. New Mexico would be a grand place to grown the stuff... but someone will revisit and reopen the Dunes Sagebrush Lizard issue... then try and make a case for the tremendous water requirements.... but if the water can be used for fracking or irrigation... it should be able to be used for large scale algae farming.

Best bet is to wait until Al Gore invests in Algae... and then watch the Federal Big Bucks roll towards those projects...

Or better yet, get people to start voting properly and then move away from the Energy Security Death Panel regime we have.

25 posted on 12/11/2013 7:01:30 AM PST by Rodamala
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To: Rodamala
then try and make a case for the tremendous water requirements....

This one is using salt water. That water can be pulled from deep reservoirs that cannot be used for drinking or irrigation.

26 posted on 12/11/2013 7:05:28 AM PST by thackney (life is fragile, handle with prayer)
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To: 11th Commandment
" it is hard to tell if this technology has a future..."

People have been working on this for decades.

Executive Summary: From 1978 to 1996, the U.S. Department of Energy’s Office of Fuels Development funded a program to develop renewable transportation fuels from algae.....

27 posted on 12/11/2013 7:07:09 AM PST by Paladin2
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To: woodbutcher1963

Another aglae oil outfit, Origin Oil, is traded as a pinksheet. Ticker symbol OOIL.


28 posted on 12/11/2013 7:07:15 AM PST by Rodamala
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To: Rodamala
At some large AZ powerplant:


29 posted on 12/11/2013 7:09:34 AM PST by Paladin2
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To: thackney
According to Jason Pyle, Sapphire’s CEO, the New Mexico algae ponds will be built on unproductive salt-saturated former agricultural land. “The land grew cotton 15 years ago, but the growing salt content gradually made that impossible.” Pyle said that “green crude oil” from algae looks very similar to petroleum, and is low in sulfur and heavy metals. He thinks that algae can replace up to 10 percent of our current transportation needs. The company’s goal is to produce fuel for $70 to $80 a barrel, which is of course cheaper than petroleum oil right now.

Joule has a pilot plant west of us here in Oil Patch City. In our area, it's not the salt content, but the declining water table and pumping of fresh water for fracking that makes it uneconomical to grow cotton.

Pumping non-renewable fresh water down oil wells for fracking is beginning to get attention here - the state oil conservation commission recently changed rules to make recycling recovered water more attractive for use multiple times for fracking.

30 posted on 12/11/2013 7:11:12 AM PST by CedarDave (Small town America - last stand for God, freedom, civility, and American values.)
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To: thackney

Isn’t crud oil considered to be an ancient algae based oil?
swamp Algae covered for millions of years and compressed to it’s basic elements?

I read, years ago, that scientists could turn garbage into oil.


31 posted on 12/11/2013 7:23:48 AM PST by Ruy Dias de Bivar (Sometimes you need 7+ more ammo. LOTS MORE.)
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To: Ruy Dias de Bivar
Algae captured in sediment and covered in more sediment (keeping it away from an oxygen source) is a significant, if not the most significant, component of crude oil fields.

It isn't tied to swamps, but was often an ocean floor as well. Some inland sources as well. The microfossils found in crude oil help provide the basis of the sources.

32 posted on 12/11/2013 7:27:58 AM PST by thackney (life is fragile, handle with prayer)
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To: CedarDave
This is an area that used to grow cotton using water wells for irrigation?
33 posted on 12/11/2013 7:31:23 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

In the News/Activism forum, on a thread titled Green oil? Phillips 66 strikes a deal to develop it, thackney wrote:
I believe almost no sulfur in the product. I haven’t found an assay of their oil yet. Below are some related discusion/links.

- - - - - - -

http://www.sapphireenergy.com/search-results-detail/423519-algae-could-solve-world-s-fuel-crisis

Dozens of varieties of the microorganisms, also known as cyanobacteria, bob up and down in bulbous beakers at Joule. A green brew fills small photobioreactors, which are used to test the blue algae under various environmental conditions. “Here we simulate for example the day-and-night rhythm of Texas,” says Robinson, explaining one of the experiments. The company has a pilot plant in Texas.

Thanks for this reasearched background you posted in comment #10 to another FR. Which I hope FRs have already read.


34 posted on 12/11/2013 7:43:15 AM PST by mosesdapoet (Serious contribution pause.Please continue onto meaningless venting no one reads.)
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To: from occupied ga
*Ehrlich had been wrong about everything he ever wrote, he still had a following of deranged individuals. (knowing that my “friend” secretly thought of Ehrlich as a prophet although he never actually mentioned it) He emailed back asking me never to write to him again. I guess I was a blasphemer.*

Ehrlich is almost as wrong as Algore!

It's a shame you lost a friend over it. I have been tossed out of the dark side of my family because I ate a chicken sandwich. I ate the chicken sandwich, not because I am against gay people, but because I support the right of a Christian business owner to exercise his right to Free Speech.

It's baffling that the Left misinterprets almost every single piece of information that comes their way.

Environuts are about as devout as islamic terrorists and hope to cause at least as much damage to civilization.

35 posted on 12/11/2013 8:17:49 AM PST by PATRIOT1876
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To: thackney

How big and how many will the slime pools be—or alternatively if produced in tanks, how many and how big will the tanks have to be to produce a billion barrels of usable fuel?

Is there any estimate on this or any existing comparable tank farms anywhere?

How many gallons of water and slime does it take to produce a billion gals of usable fuel? It can’t be a 1:1 ratio so the figures have to be in the multiple billions, no?


36 posted on 12/11/2013 8:46:02 AM PST by wildbill
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To: thackney

If they are talking about Lea County, yes they used well water for cotton. Same in the Pecos Valley, Roswell, Artesia and Hobbs. In the Pecos Valley, the wells are artesian and recharge in wet weather from the mountains to the west. However in Lea County, there is not much cotton farming anymore due to state restrictions on pumping and a declining water table. Right across the state line, however, Texans are pumping from the same aquifer (the Ogallaha) without restrictions and plant cotton and other crops including peanuts.


37 posted on 12/11/2013 3:00:11 PM PST by CedarDave (Small town America - last stand for God, freedom, civility, and American values.)
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