The Green Behind Green Crude

By Jennifer McEntee (The Voice of San Diego) Investors are a tough crowd to cultivate. Yet in the pond that is the biotechnology market, one product seems to be rising to the top like the green sludge it is: algae. Its potential use as biofuel is drawing venture money from places you might not expect. The reason: It could be both environmentally responsible and profitable.

The so-called "green crude" has piqued the interest of media from coast to coast, government agencies trying to decide how to regulate the stuff, local governments hoping it will perk up the economy, and investors with deep, deep pockets.

...There's a big push to make sure San Diego researchers get a hefty slice of the pie. About 30 local companies are working in algal biofuels, annually providing nearly $28.8 million in payroll and $56.2 million in economic activity for the San Diego region, according to recent San Diego Association of Governments estimates.

...(Tim) Zenk, (Sapphire Energy's vice president of corporate affairs) says recent awards to San Diego researchers are the exception, with government investment in alternative fuels falling woefully short.

"The government's investment is very inadequate. They need to do a lot more," says Zenk. "Private investment is another story. Venture capital firms and very large family wealth trusts like you have seen investing in Sapphire Energy are making significant investments and making this technology a reality today."

Mayfield, who has studied the molecular genetics of green algae for about 25 years, concurs that biofuel research has been historically underfunded. Part of the problem is that algae biofuel is tough to classify. Is it a plant, regulated by the U.S. Department of Agriculture? Is it a fuel, regulated by the U.S. Department of Energy? If algae could be used to fuel military vehicles, would it fall under the U.S. Department of Defense's jurisdiction? READ MORE