The Carbon Trust has launched the Algae Biofuels Challenge with a view to commercialising the use of algae biofuel as an alternative to fossil-based oil by 2020.

The challenge is a multi-million pound research and development initiative that could see the Carbon Trust commit up to £6m of funding in the initial stages.

The Department for Transport also announced it will be contributing to the funding of this initiative.

Beyond 2020, algae-based biofuel has the potential to replace a significant proportion of fossil fuel used in road transport and aviation, saving hundreds of millions of tonnes of carbon every year globally whilst creating an industry worth tens of billions of pounds.

For example, initial forecasts suggest that algae-based biofuels could replace over 70 billion litres of fossil derived fuels used worldwide annually in road transport and aviation by 2030 - equivalent to 6% 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.

Dr Mark Williamson, innovations director at the Carbon Trust, explained why public investment in algae as an alternative to fossil fuel based oil is vital: “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.

“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.”

Transport Minister, Andrew Adonis said: “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.

“We launched a consultation last week on slowing down the rate of increase of the RTFO, fulfilling our commitment to proceed with caution following Professor Gallagher’s report on the potential indirect impacts of biofuels.”

 

The challenge is to produce this second-generation algae-based biofuel cost effectively at scale.

If successful, algae could deliver up to 10 times more energy per hectare than conventional cropland biofuels, whilst reducing carbon emissions by up to 80% relative to fossil fuels.

Also, unlike traditional biofuels, algae can be grown on non-arable land using seawater or wastewater.

Therefore, using algae as a biofuel feedstock avoids many of the negative environmental, ecological and social impacts associated with first generation biofuels.

The challenge will accelerate the commercialisation of microalgae bio-oil in two key phases:

  • Phase one will provide grant funding for research across areas including selection of suitable microalgae algae strains for open pond production, maximising algae oil content and biomass yield, maximising solar conversion efficiency, sustained algae cultivation, and design and engineering of mass-culture systems.
  • Phase two is expected to see the construction of an open pond test and demonstration plant. This plant will provide the vital facilities necessary to continue the research conducted in phase one and demonstrate production at commercial scale in a manner that can be replicated.

To avoid any unnecessary delays in eventual commercialisation the plant is likely to be constructed overseas.

This is because the majority of commercial production of algae biofuels is likely to take place in tropical and sub-tropical climates that have plentiful sunlight and temperatures that do not drop too low or vary too much.