Fascinating, but is it realistic?
Company cultivates algae to make fuel
By Vic Kolenc / El Paso Times
Article Launched: 09/27/2007 07:10:10 PM MDT

Glen Kertz, right, Chief Executive Officer of Valcent Products, Inc. and
business partner Doug Frater, President and CEO of Global Green
Solutions stand by their algae bioreactors. (Rudy Gutierrez/El Paso
Times)
Glen Kertz thinks algae-filled plastic bags can be one solution to the world's thirst for fuel.
Kertz, a plant physiologist, developed a system using 10-foot-long
water-filled plastic bags suspended in a greenhouse-like setting in the
desert to grow algae, from which vegetable oil can be extracted to
produce biodiesel.
"We expect to produce 100,000 gallons (of vegetable oil) per acre per
year," which is a much higher yield than soybeans and other plants
being used for biofuel, Kertz said Wednesday. He was showing off his
patented Vertigro algae-growing system to news media, El Paso city
officials and others at his company's 6.2-acre research facility in the
Upper Valley.
"We think we can be cost-competitive with fossil fuels. That's our driving goal," he said.
Kertz, 54, is president and CEO of Valcent Products Inc., a publicly
traded company, which he and investors formed about three years ago,
and which now has most of its operations in the El Paso area.
It's developing the Vertigro system in a joint venture with Global
Green Solutions, a 3-year-old publicly traded company with offices in
Vancouver, British Columbia, the United States and Europe.
Kertz's algae-growing system "is so simple, it's ingenious," said Doug
Frater, 55, president and CEO of Global Green, which has invested more
than $3 million in the Vertigro test facility in Anthony, Texas, which
includes a high-tech algae laboratory.
The companies are losing money as they develop the new technology.
Valcent, which also is producing some consumer products, lost $10.9
million in its last fiscal year, according to its financial reports.
Global Green, which also has developed a system to turn biomass waste
into steam and electricity, had a loss of $5.6 million in its last
fiscal year, its financial reports show.
Kathyrn Dodson, director of the city Economic Development Department,
who toured the Vertigro research facility Wednesday, said at least
three other companies are working on biofuel projects in the El Paso
area.
"It's so exciting that El Paso is a place where (companies are)
experimenting with these technologies. It's an emerging industry
cluster here, and we want to understand the market," Dodson said.
Mark Townsend Cox, CEO of the New Energy Fund, an $11 million New
York-based fund which invests in companies developing renewable energy
products, and Global Green consultant, said Global Green and Valcent
appear to have one of the better algae-growing systems among 15 to 20
companies working on projects to use algae for biofuel production.
Cox's fund also has stock in Global Green.
Kertz has figured out a solution to two problems with his closed-loop
algae-growing system, Cox said: preventing water evaporation and
stopping infiltration of foreign species of algae.
"They have a really smart design that I believe is scalable and (has) the ability to do it pretty rapidly," Cox said.
Michael Berry, a former college professor who publishes an e-mailed
newsletter, Morning Notes, on "discovery opportunities" for investors,
holds stock in Global Green and Valcent, and is a consultant for the
companies. He said that he's been skeptical about the potential of
algae as a biofuel source but that he's liked what he's seen at the
Vertigro test site, which he's visited three times.
The problem with algae is that no one had "figured out how to do
continuous harvesting. But I think these guys figured it out. If they
have figured it out, it's going to be a big deal," said Berry, who is
based in the New York area.
"I'm impressed and when they go to the pilot (project), it will be interesting to see if they deliver on what they say."
Construction on the pilot plant is expected to begin late this year on
an acre at Valcent's research facility at 401Vinton Road in Anthony.
It's expected to be producing vegetable oil from algae grown in 20,000
bioreactors, the big plastic bags, by the summer of next year, Global
Green's Frater said.
The Vertigro system uses a canful of algae cells pumped into the
plastic bags with water and carbon dioxide from the air and exposed to
the sun. Algae can be harvested daily once the initial growing period
of 25 to 30 days is completed, Kertz said. Valcent's algae lab
determines exactly which algae meets its growing requirements.
Global Green and Valcent hope to be selling Vertigro systems by 2009 or
2010 to biofuel refineries in Europe, South Africa, and the United
States, Frater said.
In July, the companies announced the forming of a joint venture with
SGCEnergia, the biofuels division of the SGC Group in Portugal, to
build a Vertigro pilot plant in Portugal. It also has a deal for a
pilot project in South Africa with an undisclosed company, and is
working a deal with a company in the United States, Frater said.
A Vertigro plant of the size needed to supply a large biofuel refinery
would require about 200 to 300 acres and "probably cost about $800,000
per acre" to build and operate, Frater said. That means a full-scale
plant would cost about $160 million to $240 million.
The Vertigro system is expected to be able to produce algae oil for
about $1.70 a gallon versus about $2.63 a gallon for soybean oil,
Frater said. Those numbers are without government subsidies or tax
credits, he said.
Kertz said he's been developing his vertical growing system for 12
years. He did much of his development work at a lab he operated in
Orange, Texas, where he lived until he moved to El Paso about three
years ago.
He moved here because Valent Products began manufacturing one of its
products in Juárez, and Kertz also saw that the El Paso climate was
perfect for the Vertigro system, he said.
Valcent, which employs about 20 full-time employees and about 30
contracted employees at two El Paso offices, also produces the
Novatique Skin Cleanser device through a contracted Juárez factory. It
also is planning to sell a Tomorrow Garden indoor herb garden kit.
Vic Kolenc may be reached at vkolenc@elpasotimes.com; 546-6421.
More information: www.valcent.net; www.globalgreensolutionsinc.com