Las Cruces Bulletin photo by Samantha Roberts

Article courtesy of the Las Cruces Bulletin

By Samantha Roberts

You have to see it to believe it. The research on algae biofuel at Sapphire Energy could change the world, literally. Research and development measures at the compound could lead to replacing millions of gallons of transportation fuel a year with pond scum.  Currently, New Mexico is a leader in the world in terms of algae-based production because of its environmental conditions.

“Algae like the hot weather and lots of sunshine,” said Tim Zenk, vice president of corporate affairs for Sapphire Energy. “It even likes the slightly cooler temperatures during a New Mexico winter.”

“Algae also like brackish water,” said Denise Gitsham, Sapphire’s director of corporate affairs and legislative council. “Southern New Mexico has an abundance of salty water perfect for algae growth. And we are only using land that can’t be used for other purposes. We are not competing for drinking water or agricultural land. “We are creating the first above-ground renewable oil field.”

These reasons have led Sapphire Energy to name Las Cruces as its research and development facility, a component that will remain when the Columbus, N.M., site, which is currently under construction, is completed. Sapphire Energy started in 2007. The company has 155 employees across three facilities and more than 50 employees in Las Cruces.

“Sapphire purchased 10 acres at market value and promised to invest $6 million and create 30 jobs in three years,” said Christine Logan, economic development administrator for the City of Las Cruces. “In exchange, the city made 90 acres available at no cost. Sapphire surpassed their (promise) short of a year and a half.”

Las Cruces serves as a testing and development center, operating plot farms. The area is small in comparison to commercialization of the algae product and what will be done in Columbus but large by world standards, Zenk said. “We understand the business principles to make commercialized algae biofuel successful,” Zenk said. “We know we have to be concerned about crop protection, (fuel) extraction and crop yield as well as the biology and engineering behind the process. “Historically, 99 percent of crude oil has come from diatoms and algae. If Mother Nature can do this naturally, then so can we in petri dishes. And then take that to small ponds, to large ponds and to commercialization.”

Currently, the Las Cruces facility is operating at four different levels – petri dishes, small ponds, runway ponds and large ponds. The Columbus facility will have more large ponds connected back to back. “Our (final) goal is to produce 5,000 gallons of oil per acre per year,” said Bryn Davis, New Mexico operations manager.

Once the biofuel is capable of being produced on a large scale, Zenk said Sapphire’s initial target client will be the U.S. Department of Defense (DOD). “The DOD has led the way for every energy change,” Zenk said. “There is strategic planning going on right now for the next (energy) transition. There will be an opportunity to be at the forefront of this technology, and a big proposal will soon be released by the U.S. Navy asking for large scale efforts to supply biofuels.”

The Navy is going to look at communities with the technology and the community support. They don’t want to push a technology on a community that doesn’t want it. Therefore, it is very important for the Las Cruces community and southern New Mexico to rally around our efforts and see the benefits for all sectors.”

Zenk said the request for information was due at the end of September. “The (request for proposal) will be released around the beginning of next year,” he said.

The Columbus site is expected to open by the spring or summer of 2012 with 100 acres and will spread over 300 acres upon final completion in 2015. Columbus is expected to produce 100 million gallons of diesel fuel per year. At phase three, the Columbus site will be a demonstration facility that Sapphire hopes to use as an example, attracting investors.

“At that scale, the site will demonstrate operations for a larger facility,” Davis said. Davis said there is little time to talk about algae because developments are happening so quickly. “We are competing with other nations,” he said. “When we broke ground in Las Cruces, I was already shopping for the land in Columbus. We have to think about the next step because there is not a lot of time.”

“China’s No. 1 objective is to develop a new source of energy,” Zenk said. “It is us versus them. We can fight over energy or develop a new source. It is the only hope for our military.”

New Mexico State University also has a large role to play in Sapphire’s success.

“Our goal is to create a center of excellence with advanced biofuels,” said City Councilor Nathan Small.

Currently, more than $15 million has been invested into the Las Cruces community, and Sapphire Energy has hired more than 50 people – many NMSU and Doña Ana Community College graduates – for the Las Cruces facility. Spin-off business will also be created through growth of Sapphire and commercialization of the algae biofuel.

“We use a large amount of CO2,” Zenk said. “To produce one gallon of algae fuel, we use about 20 to 25 pounds of CO2. Finding a consistent source of carbon dioxide is crucial. The pipeline in Lea County is very valuable to us. I can also see a business in managing CO2.”

Gitsham said she expects to see more graduates of NMSU and DACC staying in southern New Mexico as a result of the work at Sapphire.

“We are still at the dawn of the algae business,” Zenk said. “The biology is only four years old, and there is still a lot more ahead of us. If someone told you they knew everything about algae biology, they are probably lying.”

By Brook Stockberger/Sun-News Business Editor

LAS CRUCES – Manufacturing is not dead. That was the message Davin Lopez, president and CEO of the Mesilla Valley Economic Development Alliance, gave a breakfast audience at Hotel Encanto de Las Cruces on Thursday. MVEDA’s annual breakfast allows the private/public entity to give report for the recently completely fiscal year.

“It’s a tough time to talk about the economy,” Lopez said. “(And) we’ve been feeling it for the last couple of years.”

Still, the economic development group reports that lead development remains strong and there has been a “significant” jump in terms of manufacturing.

“Almost 45-percent of our leads are in manufacturing and logistics,” Lopez said. “We are hearing that heavy manufacturing is coming back to America.”

He pointed to the addition of Alaska Structures at the West Mesa Industrial Complex. The Anchorage-based company which makes shelters for the military as well as commercial customers, moved into a 184,000-square foot building that used to house Rea Magnet Wire, and also uses about 100,000 square feet at the previously empty building at 8500 Mountain Vista Parkway where Parkview Metal Products used to reside.

“If you think back 12 to 18 months ago, think of all those facilities sitting vacant,” Lopez said.  In fact, he said the Las Cruces area could use more spec buildings. “The biggest challenge we have going forward is we need more buildings,” Lopez said.

In addition, capital investment has jumped considerably in Dona Ana County, spurred by the recently begun Union Pacific Railroad project in Santa Teresa, but also ahead of the pace of the past several years even without Union Pacific.

New officers

Gary Lenzo with Century Bank is MVEDA’s chairman of the board as the new fiscal year begins, stepping in for Citizen’s Bank’s George Ruth, who will now serve as past chairman of the board.  ”I have some big shoes to fill,” Lenzo said.

In addition to Lenzo and Ruth, other officers include: Vice Chair Kiel Hoffman, Pioneer Bank; Secretary Dolores Connor, City Councilor; Treasurer Jim McGonnell, Memorial Medical Center; Executive Committee Member at Large Jack Darnall, Verde Realty.

Bryn Davis, New Mexico operations manager for Sapphire Energy and former past chairman of the board, was presented with a special award for all the work he has performed for MVEDA through the years.  ”I know I’m on the phone with him a lot,” Lenzo said.

Brook Stockberger can be reached at (575) 541-5457.

Sapphire Energy photo

Article courtesy of the Las Cruces Bulletin

By Marvin Tessneer

Sapphire Energy has started construction on pond structures eight miles west of Columbus, N.M., in Luna County to produce algae for what is known in the industry as green crude, which can be refined into fuel. AMEC, the prime contractor, is putting up structures that will contain 100 acres of ponds to grow algae, also known as “pond scum,” for green crude.

“This is the first phase of our plan to build 300 acres of a green crude production field,” said Bryn Davis operations manager at the Las Cruces Sapphire office. “This will affect fuel production in New Mexico and ultimately throughout the world.”

Sapphire uses the intense desert sunlight and groundwater to produce the algae. The company owns water rights it acquired with the desert land it has purchased. Since the water is saline, the green crude production will not compete with agriculture, Davis said.

Petroleum is 200 million to 300 million year- old algae that is pumped out of the ground, according to Stephen Mayfield, a Sapphire researcher based from San Diego.

Mayfield was a key player during the start­up of Sapphire Energy, Davis said.

“Algae already make oil that looks like crude oil,” Mayfield said. “The oil we extract from algae goes directly into a refinery and gets converted into diesel or gasoline.”

“We’re on line to start producing algae in Luna County at the end of next summer,” Davis said. “That’s the goal, but it’s always changing and progressing.”

When asked how long it would take until drivers would be able to fill their storage tanks with algae biofuel, Mayfield said, “We’re probably 10 years away. Many scientists said the biofuel is worth the wait because there will not be much choice as the world’s population increases along with the need for oil.”

The green crude possibilities are so promising, the federal government and venture capitalists are investing millions of dollars in the San Diego Center for Algae Biotechnology, where Mayfield is the director.

The facility has received a $4 million state grant to train workers in the biofuel industry, Mayfield said in a Sapphire news release.

Algae grow fast in ample sunlight and small amounts of water. It can produce about 5,000 gallons of fuel per acre in a year. The best places to produce the green crude are deserts in New Mexico and the algae research farm in Imperial Valley, Calif. where the land is cheap and doesn’t compete with food production, Mayfield said.

“The enormous advantage that we have is, unlike corn, when you can get one crop a year, which is used to make ethanol, we can get one crop a week,” Mayfield said.

Green crude critics argue that algae-oil is too expensive, putting the cost at $24 per gallon.

“Technology and innovation will drive the price down while gas prices will continue to rise,” Mayfield said. “Within a decade, algae will be a less expensive fuel and the answer to independence from foreign oil. The country that controls energy controls the world. If we can’t find a domestic source for energy to power this country, we will have serious economic problems in the next 10 to 20 years.”

Sapphire also operates a series of research and development ponds in the West Mesa Industrial Park that covers more than 2 acres. The research on the West Mesa in going into the second full summer, Davis said.

Sapphire Energy photo

By Marvin Tessneer

Sapphire Energy has developed its West Mesa Industrial Park plant into an algae field research and development center, said Bryn Davis, New Mexico operations manager. The algae “green crude oil” production company is constructing a half-acre greenhouse that will be covered with plastic to allow sunlight to stimulate the algae. “We’ll be able to grow algae in small containers with a controlled environment,” Davis said. “This will allow us to experiment faster on a small scale at our field test site before moving outside to larger ponds.”

The process will be a blend of engineering, science and agriculture in one operation. The company has acquired 10 acres at the West Mesa Industrial Park and has the option to purchase up to 100 more acres. Sapphire has also acquired 1,000 acres in Luna County to produce green crude.

The company and contractors are reviewing designs to construct water raceways to cover from 100 to 300 acres underwater to produce algae, Davis said. Many researchers have good ideas, but they have to develop them to make them work, he said. Algae are microorganisms that use sunlight and photosynthesis to produce green crude oil.

The Luna County site will not compete with agriculture. The land is marginal and the water is brackish, but there is ample sunlight, the Sapphire information report emphasized. Producing algae green crude oil does not depend on crops or valuable farmland. It can deliver 19 to 100 times more energy per acre than field crop biofuels. The Sapphire goal is to produce green crude as a “drop-in fuel” transportation replacement fuel can be used as gasoline, diesel or jet fuel.

“There’s no need to change the energy infrastructure or equipment,” Davis said. “The fuel that we’re producing is indistinguishable from the fuels that we’re producing now.” Sapphire plans to start extracting green crude by the summer of 2012.

Algae raceways are constructed with concrete blocks that are lined with plastic. Small paddle wheels circulate the water to keep the algae from settling. Green crude is the oil that algae produce by combining sunlight and carbon dioxide from the atmosphere, which can be refined into fuel, gasoline, jet fuel and diesel.

Sapphire has compiled a list titled “Why Does Energy Matter So Much?” that discusses countries energy consumption. Driven primarily by transportation fuel consumption, the United States’ demand for crude oil exceeds its supply, forcing the nation to rely on imports to meet the domestic supply deficit. As the U.S. produces renewable fuels, it provides energy security and reduces carbon dioxide emissions. Algae biomass is among the renewable energy leaders.

Electric, thermal and transportation energy use in the U.S. emit about 5,890 million tons of carbon dioxide per year, and liquid fuel and coal emit 4,715 million tons per year.

Arrowhead Center

Dona Ana Community College Small Business Development Center

New Mexico Procurement and Technical Assistance Program

On behalf of all of the sponsors of the 2010 Business Owners and Entrepreneurs Symposium, you are invited to attend this year’s conference!  The Symposium will be held on Friday, August 13, 2010 at the NM Farm and Ranch Heritage Museum.  This will be a half day event, beginning at 7:30am and ending at 2:00pm.

Master of Ceremonies – Dr. Margie Huerta, President, Dona Ana Community College (DACC)

AGENDA:

7:30 a.m. – 8:00 a.m. Registration and Breakfast Networking Opportunity

8:15 a.m. Opening Remarks by Dr. Margie Huerta, President, Dona Ana Community College (DACC)

8:15 a.m. – 9:15 a.m. “The State of the New Mexico Economy: A Small Business Perspective”

Panel Moderator: Mr. William Hett-Dobricky, Procurement Advisor, NM-PTAP

Panel Members:

• Dr. Christopher Erickson, Professor of Economics, New Mexico State University
• Dr. Ken Martin, Professor of Finance, New Mexico State University
• Dr. James Peach, Regents Professor of Economics, New Mexico State University

9:15 a.m. – 9:45 a.m. “Commercial and Residential Real Estate Markets: A Local Perspective”

• Ms. Connie Hettinga, President, Realtor’s Association of New Mexico
• Mr. John Hummer, President, Steinborn & Associates Real Estate

9:45 a.m. – 10:00 a.m. Break

10:00 a.m. – 11:00 a.m. “Business Owners Panel: Issues and Best Practices in Small Business”

Panel Moderator: Dr. Kevin Boberg, CEO, Arrowhead Center

Panel Members:

• Mr. Bryn Davis, Sapphire Energy
• Mr. Mike Beckett, Owner, Coas Bookstore
• Ms. Dana Kyle, Attorney at Law
• Danny Osborn, Vice President of Operations, BroCon, Inc.

11:00 a.m. – 11:30 a.m. “SBA Recovery Act and Lending Programs”

• Mr. John Woosley, District Director, U.S. Small Business Administration, NM District Office

11:30 a.m. – 12:30 p.m. “Healthcare Reform: How it affects New Mexico’s Small Businesses”

• Dr. Beverlee McClure, President & CEO, New Mexico Association of Commerce and Industry

12:30 p.m. – 12:45 p.m. Buffet Lunch Serve

12:45 p.m. – 1:45p.m. Luncheon and Keynote Address

Introduction of Speaker: Jim Berry, President, Greater Las Cruces Chamber of Commerce

Keynote Speaker: Dr. Bill Gilmer, Vice President, El Paso Branch, Federal Reserve Bank of Dallas

1:45 p.m. – 2:00p.m. Closing Remarks Speaker: Dr. Garrey Carruthers, President, Arrowhead Center

Event registration is $49.00 per person. You may register on-line by clicking the icon below. For more information please contact the DACC Small Business Development Center (575-527-7676).

New officers for the upcoming year are:

• Vice-Chair – Gary Lenzo, First Community Bank
• Secretary – Dolores Connor, City of Las Cruces
• Treasurer – Kiel Hoffman, Pioneer Bank
• Executive Committee Member At-Large – J.B. Pruett, Northrise Ventures, LLC

Re-elected board members are:

• Clay Doyle, El Paso Electric
• Gary Lenzo, First Community Bank
• Gabe Ruiz, New Mexico Gas Company

New board members include:

• Jim Easley, Wells Fargo Bank New Mexico
• Stan Rounds, Ex-Officio, Las Cruces Public Schools

MVEDA is governed by a board of directors representing both the private and public sectors. Institutional members represent the City of Las Cruces, Dona Ana County, New Mexico State University, Dona Ana Community College, the Greater Las Cruces Chamber of Commerce, the Hispano Chamber of Commerce de Las Cruces, and White Sands Missile Range. Private sector board members represent a wide diversity of business and industry. They serve 3-year terms and are elected by the board.