Microalgae Farming
December 08, 2024
After exercising, my wife often makes smoothies. Usually they are some concoction of fruits, vegetables, protein powder and nut butters. But a few weeks ago, she made a smoothie that was bizarrely blue. Not the blue of blueberries (which is really more like purple), but bright blue like glacial waters. She said it came from spirulina, a superfood with great health benefits. These benefits, along with its photogenic qualities, have spurred spirulina sales over the past few years.
But spirulina is just one type of microalgae that has become increasingly popular, not just for health reasons, but environmental reasons as well. In addition to being used as a supplement, protein source and as a colorant for food and cosmetics (in the case of blue spirulina anyway), microalgae can be used for carbon capture and as biofuel. The varying applications of microalgae have propelled their growth, and given rise to microalgae farming (see chart below).
Some of the benefits of microalgae farming include:
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Efficiency: Microalgae grow faster than terrestrial crops, doubling in biomass in hours under optimal conditions.
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Sustainability: Requires less land and water than conventional agriculture and can thrive in non-arable lands and saline water.
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Versatility: Adaptable to various climates and applications, from food to energy.
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Environmental Impact: Reduces greenhouse gas emissions and promotes a circular economy.
Microalgae can be produced in an Open Pond system, which utilizes sunlight and atmospheric carbon dioxide, or Closed Bioreactors, which have regulated inputs. Open Pond systems are relatively inexpensive to operate, yet produce lower yields. Closed Bioreactor systems on the other hand, are expensive to operate but produce greater yields.
Looking at just the energy perspective, while microalgae biofuel may seem like a great sustainable way to produce energy, the reality is that the energy costs associated with production and harvesting may negate the energy production benefits, at least based on current technology (similar to hydrogen fuel: great promise, but energy intensive production). Harvesting costs are high for the Open Pond system, and production costs are high for the Closed Bioreactor system.
At Somar, we are big believers in the energy transition but recognize it will take time and great innovators to drive the technology forward. But we also know that it takes more than a great idea to have a great business. The companies investing in microalgae production for biofuel are private, with some having partnerships with energy giants. A company in this space, TerraVia, was formerly called Solazyme, a publicly traded company that filed for bankruptcy in 2017. This just shows how difficult this space is. But if a leader emerges that is poised to revolutionize sustainable energy, Somar will be watching.