Sapphire’s green crude oil from algae ROI.
Sapphire Energy Algae Ponds in New Mexico
Oil from algae is perhaps the cleanest crude oil produced and which can be used in existing oil infrastructure without modifications.
Sunlight + CO2 + Algae à Crude Oil
The process is also said to scale up to deliver large volumes of fuel.
Sapphire Energy announced its first continuous production of its green crude oil with sale of the oil to Tesoro.
Sapphire Energy is now producing crude oil daily from algae biomass cultivated and harvested at the company’s Green Crude Farm in Columbus, NM. Oil extraction is conducted through a patented method for converting wet algae to crude oil, which enables algae to be processed without the need for a timely and costly drying step.
But, the caveat – a $135 million investment is producing only 2 barrels per day of crude oil. And even when the plant is in full production, it will only produce 100 barrels per day about $10k per day in revenue.
This has to improve significantly if the algae crude oil has to become a viable alternative to conventional crude oil. The production volumes and efficiencies need to increase by orders of magnitude.
The $135 million plant currently has 100 acres of “cultivation capacity” and is continuously producing 2 barrels a day, Tim Zenk, a Sapphire spokesman, said today by telephone. Tesoro has agreed “to take as much as we can produce,” and the plant will encompass 300 acres and produce 100 barrels a day at full capacity, he said. He wouldn’t disclose the purchase price.
Tags: sapphire energy oil production, sapphire energy revenue, algae crude oil production, algae to crude oil, green crude oil, algae biofuels