Firstly, the company received a $25 million (A.R.R.A.) grant from the Dept. of Energy in 2009 to develop a pilot-scale biorefinery. The passage below is an explanation of Algenol’s technology (from a press release announcing the DOE award):

Algenol today possesses the most advanced third generation biofuel technology in the United States. It makes low cost ethanol directly from CO2 and seawater using hybrid algae in sealed, clear plastic photobioreactors through its unique, patented Direct to Ethanol ™  technology — all powered by the sun.

Algenol‘s research and development efforts have culminated in a process that produces over 6,000 gallons of ethanol per acre per year, compared to corn at 400. This process achieves an energy balance of more than 5 to 1 and a life cycle carbon footprint that is merely 20 percent of petroleum (an 80 percent reduction from petroleum).

Image from Algenol Website Presentation

Algenol’s founder and CEO, Paul Woods, said that in addition to the federal grant, Algenol needed an additional investment of $50 million to finish construction on the pilot-scale biorefinery. Woods said an undisclosed Asian energy company recently pledged $100 million, which he “gladly” accepted. He was having difficulties securing U.S. institutional investors. The Asian company could then license Algenol proprietary technology to build four large-scale facilities at a total cost of $3.4 billion.

Woods said [to GCBR] that Algenol can produce ethanol from algae for 85 cents per gallon.  Once a full-scale facility is built, it could pay for itself in a year.

The company has been in business five years with no revenue.  Woods and his partners (see below) have invested $70 million into Algenol to date. The company received $10 million in incentives from Lee County to build the biorefinery in Bonita Springs. Woods said that he is not worried that Algenol may not make its first sale until 2013 because it takes years and huge financial resources to build refineries.

I trust Woods knows what he is talking about because he is Canadian energy entrepreneur who retired to Bonita Springs (at 49-years-old) after he built and sold two energy companies in Canada. The first was Alliance Gas Management in Toronto, which Woods took public in 1997 when annual revenues hit $100 million. The second was United Gas Management, a $75 million company he sold in 2000.

Partners —  Dow Chemical Co., The Linde Group, Valero Energy Corp.,  the Mexican business group BioFields. Algenol is also collaborating with several universities including Georgia Tech and Florida Gulf Coast University. 

I have to do further research into the nature of these (significant) R&D and financial partnerships, so for right now this is as far as I can go with Algenol Biofuels.

UPDATE:  Algenol announced on Oct.24th that it had broken ground on the construction of its pilot-scale integrated biorefinery.

NOTE:  The Engineer’s Procrastination Pit posts a technical overview and analysis of algal biofuel process:  Playing the algal game 

Biomass commodities include recovered wood and paper, food crop residues, plant and animal waste and any woody, herbaceous or agricultural byproduct, including substances like distillers dried grains – a byproduct of ethanol production.

Ethanol itself is an agricultural commodity for CSX with its own dedicated rail service called EthX – Express Ethanol Delivery. The EthX  rail system east of the Mississippi is massive, particularly weighted in the Midwest to Northeast. There is an EthX direct rail line from Chicago through Jacksonville, Orlando and ending at Port Everglades.

Image via Tree Hugger - A Discovery Company

Whether or not ethanol is part of the green energy sphere is a topic open to debate, especially as it applies to corn-based ethanol. I’ve always been a supporter of biodiesel and advanced algal or cellulosic-based biofuels. But, second generation biofuel technology is still a long way from economic viability, so rely on corn we must: 90 percent of petroleum products in the U.S. are blended with ethanol.

But I digress.

CSX, along with Houston-based Kinder-Morgan Energy Partners and Tampa Port Authority, announced on Sept. 19th a joint venture to develop the first ethanol train-to-pipeline distribution system in the country. TPA is building new rail track and support infrastructure to allow CSX to transport ethanol from Midwest producers to Kinder Morgan’s Tampa Terminal via CSX subsidiary TRANSFLO terminal services. KM is modifying existing pipeline to accommodate ethanol (denatured alcohol) for its blending terminals at TPA. The joint operation is expected to be completed by Sept. 2012.

As an aside, KM’s 104-mile central Florida ethanol pipeline between Tampa and Orlando was the first pipeline in the country to provide commercial ethanol deliveries via pipeline. It became fully operational in 2010.

Jacksonville Market

I was going to expand on the CSX Tampa project but was diverted to ethanol distribution in my own backyard. Chevron, BP and Hess have terminals on the St. Johns River. Shipping petroleum and ethanol product (sorry CSX) is cheaper by oil tanker. All have private piers with blending facilities on site.

Jacksonville-based Gate Petroleum owns 225 service stations and convenience stores in six Southeastern states. The company is a gasoline distributor. It purchases gasoline and ethanol to blend in a variety of ways, dependent on market. My buddy Robert “Buzz” Hoover, Gate V.P. of Petroleum Supply, tells me that Gate uses Kinder-Morgan’s blending facilities in Tampa for its stores in Central Florida.

The company struck an exclusive long-term arrangement with BP to use the Amoco  (which BP acquired when they merged in 1998) terminal facilities and blends E10 gasoline on adjacent property it owns on Hecksher Drive, for distribution to the Northeast Florida and Southeast Georgia markets. 

Gate Biofuels, Inc. had planned to develop and operate a 55 million-gallon petroleum and renewable fuels terminal in 2008, but was unable to a negotiate a 200-foot easement with the adjoining property (on Heckscher Drive).  The terminal would have supplied, blended and stored petroleum, ethanol and biodiesel for its gas stations and petroleum customers (Fuel Services division) throughout its operating region.

As the major oil companies became the dominant suppliers of blended gasoline, it wasn’t cost effective for Gate to continue with plans for a terminal elsewhere. The long-term arrangement with BP does give Gate a competitive edge in the market, so the story ends well.

Meanwhile, I haven’t forgotten about the advanced biofuels and biomass mentioned earlier in this post. …

JACKSONVILLE — CSX Corp. said about itself, “Environmental stewardship is a top priority throughout CSX’s operations and management.” Or rather it said so in a Sept. 20th press release  announcing the company had received the highest score for an industrial company in Carbon Disclosure Project’s (CDP) 2010 Standard & Poor 500 Report. CSX was among five industrial companies included in the Global Carbon Performance Leadership Index (CPLI).

CSX’s score is based on greenhouse gas emissions, emissions reduction targets, and risks and opportunities associated with climate change. The CPLI recognized 48 Global S&P 500 companies that have made a commitment to good corporate governance with respect to climate change disclosure practices.

This is a grand environmental accomplishment for CSX at the global macro level, which is perhaps more than is applicable for this article. But CSX is a Jacksonville-based company, so it is certainly worth noting. At the regional level, though, CSX’s BioEnergy division is in the business of carbon reduction.

Wood pellets product picture, Georgia Biomass

To over simplify, the division’s product is rail transport for woody (cellulose) biomass pellets used in lieu of coal for power generation. Beyond that is a CSX team committed to developing the complicated domestic and international supply chains for bio-energy markets. 

Incidentally, a CSX BioEnergy informational conference for its customers and potential customers wraps up today on Amelia Island (that’s not something I’m supposed to mention but did anyway.)

UPDATE — Oct. 4th:  Held in Amelia Island, Fla., the Bioenergy Summit focused on supply chain challenges, energy portfolio transformation, and regulatory updates. The summit included a presentation by Chuck Leavell, author of multiple publications on environmental issues and acclaimed musician. Other speakers included Gunnar Tinjar, Head of Biomass Upstream for the German Utility RWE Innogy; William A Johnson, owner of Biomass Consulting Services; Rick Boyd, Manager of Fuel Operations for Dominion Generation; Dr. Kenneth Mitchell, Special Assistant to the Air Programs Division Director for U.S. Environmental Protection Agency Region 4; and Niel Barnard, Managing Director of London based International Woodfuels Europe.    

The largest CSX partnering project to date is with Savannah-based Georgia BioMass facility in Waycross, Ga. According to Georgia BioMass, the plant is the largest wood pellet plant in the world. It began operations in May and CSX unit trains are expected to transport as much as 750,000 tons of wood products annually from the plant to the Port of Savannah for export.

Savannah-based Georgia Biomass, LLC  is a wholly-owned subsidiary of RWE Innogy, which is a wholly-owned renewable energies company of Ruhr, Germany-based RWE – one of Europe’s five leading electricity and gas companies.

“Okefenokee Area Development Authority (OADA) did an outstanding job working with CSX Regional Development, European customers, the State of Georgia, and Ware County officials to make this significant economic development happen,” said Clark Robertson, CSX assistant vice president-regional development. “It will bring needed jobs to Ware County, and help position Georgia as a leader in the renewable fuels business.”

Georgia Pine, image Georgia BioMass

“CSX was very pleased to be selected as the rail carrier for this new venture,” Robertson said. “Given the abundant forest assets in the region, we are hopeful that other firms may be encouraged to join in the production of wood products for renewable energy and take advantage of our excellent rail network. We offer considerable expertise in the transportation of renewable fuels, including bio-diesel and ethanol.”

I anticipate further updates from CSX BioEnergy because, yes, the region abounds in cellulosic assets. Meanwhile, bio-diesel and ethanol are considered agricultural commodities at CSX,  with departmental news of its own to follow…

U.S. Rep Corrine Brown speaking at the opening of Saft America's lithium-ion battery plant -- James Crichlow (JBJ)

At any rate, both Jacksonville Business Journal and Florida Times-Union did their due diligence. JBJ’s matter-of-fact coverage is headlined: Saft factory opening means 277 jobs on the way while FTU is political: Stimulus’ role touted in new westside battery plant.

Saft America received $95.5 million in federal stimulus money for its plant. This is money well spent because Saft is the world’s leading designer, developer and manufacturer of advanced technology batteries. It is unclear to me why Sen. Bill Nelson would even mention Calif.-based (start-up solar panel of questionable technology manufacturer)  Solyndra’s $535 million bankruptcy fiasco.

Here is what JBJ had to say about the whole affair:

John Searle, CEO of Saft Groupe, speaks at the opening of Saft's $200 million lithium-ion battery plant -- James Crichlow (JBJ)

It was a red carpet event with many of the top city, state and federal officials coming together to celebrate the grand opening of Saft America Inc.’s high-tech battery factory at Cecil Commerce Center Friday.

Saft manufactures lithium-ion batteries for storing renewable energy, smart grid support, telecommunications, transportation and defense. John Searle, CEO of Saft Groupe, Saft America’s French parent company, said the 235,000-square-foot facility is the most modern, state-of-the-art automated facility in the world.

Speakers at the event included Jacksonville Mayor Alvin Brown; Vice Adm. Mel Williams, Associate Deputy Secretary of the Department of Energy; and Sen. Bill Nelson and U.S. Rep. Corrine Brown, both Florida Democrats.

“This is the type of private-public partnerships I’ve been focused on for the past two years,” Brown said. “Government can’t do it alone.”

Saft made a $200 million investment in Jacksonville, with the Department of Energy giving $95.5 million to fund the plant. The plant has already hired about 100 people and expects to employ 277 jobs once in full production.

You’re absolutely right, Corrine!  Obviously, government can’t do it all alone. As much as U.S. Rep. Brown drives me crazy (sometimes), she does manage to get things done. I can’t remember how many years ago it was, but  former Pres. Bill Clinton spoke at a luncheon at the Prime Osborne Convention Center. He said [sic],  ”When I saw Corrine walking down the hall I knew I would have to ‘yes.’”

Alliance Florida at Cecil Commerce Ctr.

A selling point for Jacksonville and Northeast Florida is its inter-modal logistics capabilities. For the city of Jacksonville specifically, the 17,000-acre multi-use Cecil Commerce Center property is its primary long-term economic development asset. Within it, the Jacksonville Airport Authority owns 6,000 acres with the third longest runway in Florida.  Hillwood Investment Properties is the master developer for 4,475 (industrial and commercial-zoned) acres named Alliance Florida at Cecil Commerce Center.  

As noted in the 2010 overview, A Farnborough International Airshow landing, Boeing (already a Cecil tenant) had considered Cecil as an assembly location for its 787 Dreamliner, but the company’s final choice was North Charleston, S.C.

[This is a bit of editorializing on my own part, but I approve of the House Oversight and Government Reform Committee's investigation into the National Labor Relation Board's decision-making process in its lawsuit against Boeing for choosing a right-to-work state to set up shop.  I'm not going any further with this other than to wonder what would have happened if Boeing chose Cecil instead.]

Foreign Trade Zone

In Florida Trend magazine’s July issue was a great piece, Streamlining the Foreign Trade Zone Program, on JaxPort’s Free Trade Zone updated status as of May.  Alliance Florida now has the added feature of FTZ designation in its marketing portfolio.

JaxPort, which previously administered an FTZ that covered 1,400 acres at its terminals, worked with the U.S. Department of Commerce to create the new FTZ for its entire customs district, which includes Duval, Nassau, St. Johns, Baker, Bradford, Clay, Union, Columbia and a slice of Putnam County.

AllianceFlorida at Cecil Commerce Center has been named magnet site for Duval. Developer Hillwood Investment Properties already offered the incentive at its AllianceTexas and AllianceCalifornia projects; the former has become the top FTZ in the United States in the value of foreign goods.

Saft America 

Beyond the Foreign Trade Zone at Alliance Florida, are the 20 or so companies considering Jacksonville and Northeast Florida for business operations. At the 2009 International Paris Air Show, the city of Jacksonville met with the Saft Group, who ultimately chose Cecil Commerce Center for its lithium-ion batteries manufacturing plant this past March.  Saft is the world’s leading designer, developer and manufacturer of advanced technology batteries for industrial and defence applications. Saft America’s corporate headquarters is in Valdosta, Ga. Its parent company is based  just outside the city limits of Paris, France.

This is a  (kind of cool) off-the-cuff video of Saft Group CEO John Searle at a Chamber of Commerce luncheon explaining why the company chose Jacksonville for its plant:  John Searle Saft Group.

Production began in July September 16th is the grand opening for the $200 million facility.  According to the Dept. of Energy, “Saft was awarded $95.5 million in Recovery Act funds and $20.2 million in financial incentives from Jacksonville and the state.”

Workers check the production of lithium ion automotive batteries in the Johnson Controls - Saft Advanced Power Solutions' factory in Nersac, southwestern France.

I’m not sure which companies were approached at the 2011 show, but I am sure I won’t be told for competitive reasons. I have to follow-up on Farnborough, and there’s still much more at Cecil Commerce in need of exploration.