Things we do for ourselves die with us; what we do for others lives on and on
Valcent: Algae - 100,000 gallons (of vegetable oil) per acre per year?
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
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
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