Obama's Algae Racket

[Guest]

Michelle Malkin

Pond scum stinks. And so do the Obama administration's enormous, taxpayer-funded "investments" in politically connected biofuel companies. While the president embarks on a green rehabilitation tour this week to quell growing public outrage about big green boondoggles, the White House continues to cultivate a cozy algae racket.

Obama's promotion of algae as a fuel source at a campaign speech in Miami last month caught the nation's attention. But algae companies have been banking on administration support from Day One. In December 2008, when the White House announced the nomination of Energy Secretary Steven Chu, the CEO of Florida-based biofuels startup Algenol, Paul Woods, exulted to Time magazine: "You see this smile on my face? It's not going away. Everyone is really excited by this."

The next year, Woods and Algenol -- dubbed "Obama's favorite algae company" by Forbes magazine -- racked up $25 million in federal stimulus grants from Chu. Say cheese.

Yet another algae-based biofuels developer, Sapphire Energy, has absorbed $105 million in stimulus funds and loan guarantees even as doubts about the practicality, efficiency and viability of pond-scum fuels multiply. Sapphire's CEO, Jason Pyle, has donated exclusively to Democratic campaigns, candidates and committees -- and his company's website reads like a satellite White House communications office:

-- "President Obama Announces $14 Million Funding Opportunity To Develop Transportation Fuels from Algae";

-- "President Obama's Secure Energy Blueprint -- Industry Reaction";

-- "Obama Defends Energy Policy, Hitting Back At Presidential Candidates."

Another prominent DOE recipient in the world of blue-green sludge? San Francisco-based Solazyme. The manufacturer of algae-based renewable fuels has scooped up more than $21 million in federal stimulus grants and contracts. Solazyme's ties to the White House and the Democratic establishment in Washington are myriad. As blogger J.E. Dyer at HotAir.com (which I founded in 2006 and sold in 2010) reported in December, Solazyme's "strategic advisers" include TJ Glauthier -- a member of the Obama presidential transition team who just happened to work "on the energy-sector portion of the 2009 stimulus bill."

Andrew Stiles of the Washington Free Beacon writes that Glauthier:

"serves on the board of EnerNOC Inc., a company that provides demand-response services to electric utility firms. EnerNOC won a $10 million contract with the Department of Energy Resources in 2010 despite being underbid by competitors, the Boston Herald reported. Glauthier also served on the board of SunRun, a solar financing company that received a $6.7 million federal grant in 2010."

And in total, Glauthier adds, "Solazyme officials including Glauthier have contributed at least $360,000 to Democrats since 2007."

Wait, that's not all. The head of Solazyme's Washington lobbying office is Drew Littman, former chief of staff for Democratic Sen. Al Franken. Littman's old pal, entrenched D.C. lobbyist and Obama appointee Michael Meehan, feted Littman earlier this year and bragged that "we couldn't be more thrilled to be working on a daily basis with Drew and the Solazyme team."

Thanks to one of President Obama's executive orders, Solazyme secured a $12 million contract with the U.S. Navy to unload hundreds of thousands of gallons of biofuel -- priced at an estimated four to seven times the normal cost of regular jet fuel.

This self-sustaining crony ecosystem, powered by administrative fiat and wealth redistribution, gives new meaning to the phrase "green crude."

http://townhall.com/columnists/michellemalkin/2012/03/21/obamas_algae_racket/page/full/

[Neil D]

;From Wikipedia

Algae fuel might be an alternative to fossil fuel and uses algae as its source of natural deposits. Several companies and government agencies are funding efforts to reduce capital and operating costs and make algae fuel production commercially viable.[1] Harvested algae, like fossil fuel, release CO2 when burnt but unlike fossil fuel the CO2 is taken out of the atmosphere by the growing algae.

High oil prices, competing demands between foods and other biofuel sources, and the world food crisis, have ignited interest in algaculture (farming algae) for making vegetable oil, biodiesel, bioethanol, biogasoline, biomethanol, biobutanol and other biofuels, using land that is not suitable for agriculture. Among algal fuels' attractive characteristics: they do not affect fresh water resources,[2] can be produced using ocean and wastewater, and are biodegradable and relatively harmless to the environment if spilled.[3][4][5] Algae cost more per unit mass (as of 2010, food grade algae costs ~$5000/tonne), due to high capital and operating costs,[6] yet are claimed to yield between 10 and 100 times more energy per unit area than other second-generation biofuel crops.[7] One biofuels company has claimed that algae can produce more oil in an area the size of a two car garage than a football field of soybeans, because almost the entire algal organism can use sunlight to produce lipids, or oil.[8] The United States Department of Energy estimates that if algae fuel replaced all the petroleum fuel in the United States, it would require 15,000 square miles (39,000 km2) which is only 0.42% of the U.S. map[9], or about half of the land area of Maine. This is less than 1⁄7 the area of corn harvested in the United States in 2000.[10] However, these claims remain unrealized, commercially. According to the head of the Algal Biomass Organization algae fuel can reach price parity with oil in 2018 if granted production tax credits.[11]

Apparently, it needs private moneys and the goverment's tax credits to continue it's fine tuning of aquiring biofuels..

[Dr. Shane]

I would love to see algae fuel. I don't know how much algae it takes to make a gallon of gas or how much "power" that gallon would have but if it could be profitable I am all for it.