Article courtesy of the Las Cruces Bulletin

By Marvin Tessneer

Sapphire Energy is constructing an integrated algal bio-refinery (IABR) to produce green crude oil on a site near Columbus, N.M., in Luna County, the first commercial facility in the country, according to a company newsletter. Sapphire, which is headquartered in San Diego, also operates a 22-acre test and development facility in Las Cruces’ West Mesa Industrial Park.

 Sapphire has scheduled a multi-year project to produce green crude. The first production phase will start this summer. By 2014, the company expects the Columbus IABR facility to produce 100 barrels, or 1 million gallons of fuel a year, according to Sapphire.

The Columbus IABR facility is expected to provide 700 jobs during construction and 30 permanent jobs for continued operations. Sapphire has designed raceway ponds at Columbus to grow algae that will cover 100 to 300 acres. In the energy business, the operation is termed “farming under water.”

Government agencies believe Sapphire is on the right track to grow and harvest algae and produce green crude. The U.S. Department of Energy has awarded the company a $50million grant and the U.S. Department of Agriculture has guaranteed a $54.5million loan, according to Sapphire.

Most people consider green mass seen on ponds “green gunk.” But Sapphire is developing that green gunk, or algae, into a renewable and sustainable transportation fuel that will help reduce the nation’s dependence on foreign petroleum.

“All of us on the research and development side are rooting for Sapphire to have tremendous success at its commercial demonstration facility at Columbus,” said Pete Lammers, New Mexico State University biochemistry professor.

Algae are a micro-organism that combines sunlight and carbon dioxide from the air as sources of energy to produce green crude oil. Scientists report algae can produce 10 times or more energy per acre than other bio-fuels crops. Algae don’t compete with food crops. Land at the Columbus site is marginal for crops, and the water is brackish and not suitable for irrigation.

The algal green crude is termed “drop-in” fuel in the industry. The Sapphire newsletter reported, “Sapphire Energy has cultivated algae that create renewable crude oil that can be processed in existing refineries into jet fuel, diesel and gasoline. These drop-in replacement fuels are molecularly identical to petroleum-based fuels and are compatible with existing infrastructure and engines.”