Biofuel Breakdown: Algae, Biomass, Waste

Newark, N.J.-based International Energy Inc. said Wednesday that it had developed a technology to quickly determine the content of oil and other valuable materials in microalgae.

That could be valuable for companies looking for a commercially viable way to convert algae to biofuel, as determining when to harvest the plant at its maximum oil production remains a challenge.

How valuable these various biofuel developments will be will depend on whether they aid in making their respective technologies commercially viable, said Rick Kment, a biofuels analyst at DTN Research.

"A lot of these work well in the lab, and some of them seem to work well in pilot-type projects," he said. "But until they get to a commercial setting, it's hard to say how effective and cheap they will be."

Companies seeking to make biofuel from algae, for instance, have struggled with cost-effective ways to grow the plants and extract their oil content, Kment said.

While some have claimed progress toward delivering fuel products at low enough cost to serve the market's needs, others have faced setbacks.

Similar challenges exist for converting pyrolysis oil to a usable transportation fuel, he said, although the unprocessed oil is useful in industries including cosmetics and food processing.

Still, the search for commercially viable alternative feedstocks to produce biofuels is ramping up amid concerns that directing larger volumes of crops like corn and soybeans toward ethanol and biodiesel production may harm the environment and drive up the price of food.

In a biofuel development along more tried and true lines, the San Francisco Port Commission on Tuesday approved Darling International's (DAR Quote) plan to build a biodiesel refinery at Pier 92. The biodiesel plant will be able to produce up to 10 million gallons per year using processed animal fats, used cooking oils and grease from Darling's existing rendering plant.

The plant could be the first biodiesel refinery in San Francisco and a fuel source for the city's fleet of 1,500 biodiesel vehicles. Darling plans to spend $7 million to $10 million to convert its rendering facility into the refinery.