Carbon Trust to develop algae-based biofuels

Research could lead to fuels with 80% reduction in CO2, trust says

The Carbon Trust has announced plans to develop a sustainable, cost-effective biofuel from algae.

The trust will work with a “dream team” of British universities to find a formula for cultivating 70 billion litres of algae biofuel a year by 2030, it said today. The Carbon Trust said this would equate to 6% of road transport diesel and save more than 160 million tonnes of carbon dioxide every year.

The eleven institutions, which include the universities of Manchester, Newcastle and Sheffield, were selected from more than 80 initial proposals.

The work will see thousands of strains of algae screened to find the few that can produce large quantities of a substance similar to vegetable oil. Additional research will develop methods for enabling large-scale production in algae ponds.

Next year, the Carbon Trust plans to start construction of a pilot demonstration plant in an equatorial region where algae are most productive.

Algae has the potential to deliver five to 10 times more oil per hectare than conventional cropland biofuels. Lifecycle analysis by the trust indicates that, over time, it could provide carbon savings of up to 80% compared with petrol and jet fuel.

With costs of algae biodiesel currently estimated to be $5-$10 a litre, Carbon Trust is focusing on more cost-effective production methods with the aim of bringing the cost down to less than $1 a litre.

Tom Delay, chief executive of the Carbon Trust, said: “We have pulled together a dream team of over 70 UK algae scientists who have the expert knowledge to turn algae into a British biofuel success story.  

“Applying principles this country has developed from its proud agricultural heritage and leading bioscience expertise, we will be developing a truly sustainable biofuel that could provide up to 80% carbon savings compared to diesel savings in car and jet fuel. With a market value of over £15 billion the potential rewards are high.”

Production of 70 billion litres will require manmade algae ponds with a landmass larger than Wales to be built in optimum locations across the world, the Carbon Trust said.

Algae need a source of carbon dioxide and water to grow so the trust is now looking at possible locations for large-scale plants which could be, for example, next to industrial facilities located near the sea.

The Carbon Trust is investing £8 million over three years into the projects, using funding from the Department for Transport and the Department for Energy and Climate Change.