New IHS Report First to Study Economics of Commercial Scale Biofuels from Algae

MENLO PARK, Calif.--([ BUSINESS WIRE ])--IHS (NYSE:IHS), a leading source of critical information and insight, just published the first study that compares process designs and the associated economics for producing 30 million gallons/yr of biodiesel from three competitive microalgal technologies in a new SRI Consulting report Biofuels from Algae.

"Based on the plant cash costs, the open pond raceway appears to be the method of choice, but this comes with high fixed capital investment"

The technology behind developing biofuels from algae shows promise of resolving many of the issues that appeared with first- and second-generation biofuels, and as a potential energy source, it does not compete with food or feed crops, can produce much higher yields than current agricultural crops and can be cultivated on barren land. This report presents a head-to-head comparison of the production economics for three major processes based on fundamental engineering analysis. It includes a comparison of variable and fixed costs, as well as required capital investment costs. The report also examines the production of algal oil from microalgae grown using phototrophic algae growth in open pond raceways, phototrophic algae growth in closed photobioreactors (PBRs), and heterotrophic cultivation in closed fermentors.

aBased on the plant cash costs, the open pond raceway appears to be the method of choice, but this comes with high fixed capital investment,a said Dr. Sudeep Vaswani, Biofuels from Algae author and consultant. aHowever, of the three competitive technologies studied in this report, the heterotrophic method appears to be quite promising. It has the lowest capital costs, requires the least amount of real estate, has high productivity, and is immune from contamination from external sources.a

The report has been developed for biofuel producers and technologists, investment communities and governments interested in comparing algae biofuel technologies with other green technologies. For additional information, please contact RJ Chang at [ rchang@sriconsulting.com ] or +1-650-384-4307. Information about additional SRI Consulting reports from IHS is available at [ http://www.sriconsulting.com/PEP ].

About SRI Consulting

SRI Consulting is now part of IHS Inc., and is the worlda�s leading business research service for the global chemical industry. Publishing for over 60 years, SRI Consulting is the preeminent source for in-depth business and process analysis. Additional information is available at [ www.sriconsulting.com ].

SRI Consulting (SRIC) is a trade name and a registered trademark of SRI International, used under license.

About IHS([ www.ihs.com ])

IHS (NYSE: IHS) is a leading source of information and insight in pivotal areas that shape todaya�s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. Businesses and governments around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 4,400 people in more than 30 countries around the world.

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New IHS Report First to Study Economics of Commercial Scale Biofuels from Algae