Algae to Ethanol Producer Algenol Bets On New Production Method

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Now, armed with patents, several test facilities around the world, and some $70 million in private backing, Algenol is targeting its first large-scale ethanol production facility with output that may rival that of some of the category's largest U.S. players. Algenol recently inked a partnership with BioFields, which has committed $850 million to build an industrial-scale ethanol facility in Mexico on 102,000 acres of desert located near the Pacific coast and not far from Cabo San Lucas.

Using a patented algae, Alegenol uses seawater and places the water-based plant inside. As the algae grows, Alegenol will tap into carbon dioxide from a nearby power plant and funnel it into the tanks. The algae takes the gas and converts it into oxygen and evaporated alcohol, which is then removed and concentrated for use as fuel. Unlike other algae players that make diesel oil by processing algae itself, Algenol doesn't spend time or energy removing the algae. It uses the ethanol vapors that the plant emits

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