Cost Analysis of Algal Scale-up and Processing at San Domingo Ranch https://grants.dudleytdoughertyfoundation.org/proposals-2011/cost-analysis-of-algal-scale-up-and-processing-at-san-domingo-ranch https://grants.dudleytdoughertyfoundation.org/@@site-logo/sitelogo-75x75.png

Cost Analysis of Algal Scale-up and Processing at San Domingo Ranch

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Used for	Funds will be used to assess the feasibility of establishing a profitable algae growth and processing operation at the San Domingo Ranch. First native algae will be identified and characterized in terms of nutrient content, including protein, lipid, and carbohydrates to determine monetizable products. The availibility of water and its chemistry will also be evaluated. Based on the nutrient properties of the identified algae, a cost analysis will be performed to estimate the capital and operating costs of an algae growth and processing facility versus projected revenues from the operation.
Benefits	Microalgae, which convert sunlight and CO2 into oils and high quality, protein-rich biomass, represent a sustainable source of biofuel and animal feed. Small ranches with a sufficient water supply and access to cost-efficient processing technologies have the opportunity to harness the power of these micro-organisms and provide fuels and feedstock to local farms. A comprehensive cost analysis of establishing an algal growth and processing operation is the first step to launch a first-of-its-kind pilot operation at San Domingo Ranch and provide a model for other small farms.
Proposal Description	Background Energy Currently, the world consumes ~15 terawatts of energy per year and only 7.8% of this is derived from renewable energy sources. Yet, ~85,000 terawatts of sunlight hits the surface of the Earth every year (Cho, 2011). Despite this bounty of available renewable energy, replacing fossil fuel‐derived energy with renewable energy sources derived from sunlight, such as wind, solar, hydro, or biomass energy is a challenging in large part because these energy sources have a lower energy density, cannot be controlled with an ‘on and off’ switch, and most are currently considerably more expensive than what fossil fuels are today (Kerr 2011). Photosynthetic organisms such as higher plants, algae, and cyanobacteria use sunlight and carbon dioxide to produce a variety of commercially useful organic molecules, particularly proteins and lipids. Microalgae have a much faster growth rate than terrestrial crops, with many species doubling daily, and thus can be harvested accordingly. Furthermore, microalgae can grow in areas uninhabitable to other terrestrial crops, and thus do not displace these crops in the consumer food chain. The Department of Energy has identified Texas as an ideal location for large scale microalgal growth and commercialization of algal products, although a consistent supply of water remains a technical barrier to large scale growth. Animal Feed The world’s current growth rate is at 1.2% and is projected to nearly double in 56 years from approximately 6.9 billion to 13 billion (PRB, 2008). With a rising human population, the availability of food resources is at serious odds with its growing demand. Of particular importance are sources of protein. In animal diets, soybean meal is the most widespread source of high‐quality protein incorporated to meet animal protein nutrient requirements as determined by the National Resource Council. Soybean meal may provide 44‐86% crude protein and is also responsible for a significant percentage of the feed costs (NRC, 1998). According to the Food and Agriculture Organization, there are 1 billion cattle, 40 billion poultry, 1 billion swine, and 2 billion sheep and goat populations globally (Steinfeld et al., 2006). Since soybean meal is also a staple food for human consumption, its strong prevalence as a protein source in animal diets directly competes with its application in the human food market. When considering the world food crisis and our growing population, it is evident that our current infrastructure of animal feed and human food sources is unsustainable. Thus, developing alternatives to using soybean meal in animal feed not only demands our immediate attention, but also is a necessary path for the sustainable livelihood of persons living on earth. The diversity of microalgae’s relatively rich amino acid profiles and high mineral composition make them a promising candidate for incorporation into animal feed. In a study on the nutrient composition of Spirulina maxima, over 60% of the dried alga was composed of crude protein, which consisted of all the essential amino acids. The algae supplement was also high in several vitamins, including B1, B2, and especially β‐carotene (pro‐vitamin A), and had adequate digestibility when fed to animals (Boeckaert 2008; Herber 1996). As such, the concept of using microalgae as an alternative source of protein supplementation in animal feed presents an extremely exciting opportunity to improve global food security by increasing soybean meal availability for human consumption and fill a vital need for the future. OpenAlgae Technologies Algae biomass and biofuels are not without limitations, largely due to the high cost of the infrastructure and the energy required for growth and harvesting due mainly to the high water content of growing algae. The traditional approach for harvesting and processing microalgae typically includes an algae concentration step, a drying step, and an extraction step. Concentration (dewatering) can be accomplished using a centrifuge, dissolved air floatation, or flocculation; algae can be dried using an oven or drum dryer; hexane or supercritical CO2 are typically used to extract algal oils. Not only are these processes expensive, but direct contact with hexane corrupts the biomass. Thus, using the traditional methods of processing algae, the grower may either monetize the oil or the feed, not both. The University of Texas recognized that in order for large scale algal growth to be successful, the grower must be able to recover algal oil products and monetize the clean biomass as feed or fertilizer. In 2007, UT formed a multidisciplinary team to develop technologies to drive down the cost of processing microalgae. Over the last four years, UT civil engineers have developed a flow‐through dewatering and concentration technique initially based on wastewater treatment strategies; electrical and mechanical engineers along with biochemists and physicists developed a technique to rupture algal cells and liberate algal oils; and chemical engineers repurposed off‐the‐shelf technologies to recover the liberated oils. All of these technologies have been assembled sequentially onto a mobile unit that can be driven to the grower’s site to harvest and process algae on a flow‐through basis from a pond or bioreactor to produce two products, bio‐oil and clean biomass. The system is appropriate for freshwater to seawater algae and the oil recovered from a site is dependent on the oil concentration within the algae. Proposal We propose to assess various microalgae located on the San Domingo Ranch and perform a cost analysis for processing microalgae from this location using OpenAlgae technologies. A small team of UT researchers will sample microalgae from the site along with the associated water. Once the water chemistry is determined, the algae will be scaled up at the UT Algae Institute, then further evaluated for nutrient content, including proteins, carbohydrates, and lipids. Based on the growth inputs and nutrient contents, we will conduct an analysis of the costs associated with scaling up the selected algae at the site and compare these costs to projected revenues. Because microalgae availability varies throughout the year, algae will be sampled quarterly over the course of one year. Analyses will be performed as samples are collected and the information may be shared with the Dougherty Foundation as periodic reports. Specific Aims Aim 1: Identify local algal species with high protein and/or lipid concentration. UT will isolate algal species growing in moist environments in southeastern Texas. The alga may be growing in water or wet soil. A water chemistry analysis will be performed for each site to determine native growing conditions. The isolate will then be further grown at UT in the native water to a cellular density that will facilitate further analysis. The analyses will include, but may not be limited to, protein and lipid concentration. Aim 2: Conduct a Return on Investment (ROI) analysis based on the findings of Aim 1. The protein and lipid contents of the candidate algal species identified in Aim 1 will used to calculate the 1) volume of water required for scale‐up growth, 2) nutrients required for scale‐up growth, 3) the estimated cost of growth and processing of the algae, and 4) the estimated volume of algal oil or protein production at scale. These costs will be based on utilizing OpenAlgae processing technologies developed by the University of Texas. Deliverables Updates on selected algal species’ nutrient content and growth kinetics. Cost analysis of scale‐up and processing vs projected revenue. Final report detailing all findings and analyses.