Based in Alameda, CA, Aurora Biofuels is a renewable energy startup company which uses algae generated oils as a source of biodiesel fuel. Founded in 2006, Aurora explores new sources of biofuels which are designed to come from a non-agricultural source. The company’s genetically engineered microalgae are able to rapidly produce bio-oil in large quantities. Unlike other biofuel sources such as corn or soy, using algae does not reduce feedstock for human consumption. As a result of photosynthesis, the algae remove carbon-dioxide from the air while it grows, further contributing to reducing green house gases. Algae produce more bio-oil per acre than traditional biodiesel crops and Aurora plans to utilize open-pond systems for bio-oil production, which are large and relatively inexpensive to construct but may be subject to intrusion by ‘weed’ organisms.

Aurora Biofuels energy solutions are based on technology previously developed by microbial biology professor and hydrogen fuel pioneer Tasios Melis, a professor at the University of California at Berkley. Since it is such a young company and the market for biofuels is constantly changing, it is difficult to estimate the exact market value for Aurora Biofuels research or innovation. However, investors are clearly taking an interest in the future prospects of algae-based biofuels. Aurora recently received 20 million in investment from several firms including Oak Investment Partners, Gabriel Venture Partners, and Noventi. It is estimated that the Compound Annual Growth Rate (or CAGR) for the biofuel market will grow by 12.3 percent between 2007 and 2014, which is very attractive to investors. The fact that algae produce 125x higher yield bio-oil than corn (ethanol) at 50 percent of the cost makes the future of algae generated biodiesel look promising. Currently, there are only a few other companies such as Solix Biofuels and Synthetic Genomics, which are also developing algae based bio-oils.

Reducing American dependence on foreign oil and finding sustainable, renewable energy sources is currently a key area of interest and investment. The benefits Aurora Biofuels presents through the harvesting of bio-oil from algae is a positive contribution to this effort, and helps to solve contemporary energy needs. There are numerous potential implications from the utilization of Aurora Biofuel technology including political, environmental, and economical. A successful reduction in national dependence on oil could have significant political impact on U.S. relations with oil producing nations. Algae based biodiesel production would help reduce carbon dioxide, thus lowering green house gases while also producing oxygen; both are positive for the environment. Economically, algae require less space and resources (e.g. water) while producing more bio-oil than other crops which gives it a potentially high profit margin and low cost-benefit ratio. Aurora Biofuels research and technology offers a potentially profitable, environmentally beneficial renewable energy resource which is at the leading edge of biodiesel and clean energy development.

Labels: Advanced Energy