Posts Tagged ‘Sapphire Energy’

Article courtesy of the Las Cruces Bulletin

One of the tiniest plants on Earth will soon be swimming all across the dusty desert of New Mexico. That’s a result of New Mexico State University and its newly created Algal Bioenergy Program. The program is a centralized effort to coordinate research and economic development opportunities related to fuels made from algae.

“There is enormous potential for a fully functioning algal fuel industry to create jobs and generate revenue for New Mexico, and these are jobs that cannot be shipped overseas,” said Vimal Chaitanya, NMSU’s vice president for research. “This program helps the state of New Mexico, as well as NMSU, which is already considered one of the top universities in the nation for algae research.”

NMSU currently has scientists researching every step of the algae production process, including cultivating, harvesting, extracting, refining and fuel testing. NMSU is also investigating the sustainability and economic impacts of algae production, which would support a variety of products. The university is part of a consortium awarded $44 million earlier this year by the U.S. Department of Energy to study the commercialization of algae-based fuel.

Algae are essentially tiny green oil factories, continuously turning sunlight and carbon dioxide into oils, also known as lipids. Once extracted, those lipids can then be refined into oil, gasoline, diesel and even jet fuel. Unlike ethanol made from grains, algal fuels can be stored in the same tanks, shipped through the same pipelines and run in the same engines as traditional fuels without any necessary modifications.

Additionally, oil production in algae is typically 10 times more efficient than oilseed crops and algae can be grown on arid land using salty water unsuitable for other agricultural purposes.

“New Mexico is an ideal location for growing algae because it has lots of high intensity sunshine, relatively few cloudy days and access to brackish water supplies, which can be used to grow algae,” said Peter Lammers, an NMSU research professor and technical director of the Algal Bioenergy Program.

He said further research and development are needed to lower production costs while increasing the productivity of algae. The five-year goal is to deliver reliable agronomic systems and what he calls “bankable business plans” to farmers who can use them.

MVEDA just completed another successful Business on the Border Luncheon and we are thankful to everyone who had the opportunity to attend.

Our guest speaker on Tuesday was Fred Mondragon, the Cabinet Secretary of Economic Development, who shared some economic data on the status of New Mexico and Southern New Mexico’s economies, and also provided some words of advice as to how we might keep the momentum moving forward in Dona Ana County.  The Secretary outlined and highlighted several success stories for Dona Ana County that included (click on graphic to view presentation):

• A September 2010 unemployment rate in Las Cruces 2% below the national average and more than ½ percent below the State’s average,
• Site Selection Magazine and Business Facilities ranked New Mexico in their Top 10 nationally for:

o    #2 in Solar Energy Manufacturing Leaders,

o    #3 in Workforce Training Leaders,

o    #5 in Alternative Energy Industry Leaders,

o    #6 in Cost of Labor, and

o    #8 in Economic Growth Potential.

• Regionally, Las Cruces ranked in the following areas:

o    5^th in U.S. in projected 2009-2011 employment growth rates.

o    8^th in Milken’s 2010 Best-performing small cities,

o    #9^th in Business Week’s top recovering job markets for 2010, &

o    Dona Ana County ranked 14^th Best County in the nation for job growth over the last nine years by Money Magazine.

The Secretary also praised many of the strides Southern New Mexico has made with respect to:

• The aerospace industry, where he cited Spaceport America and the selection of NMSU as an FAA Center of Excellence for Commercial Space Transportation as the anchors that will spur this industry forward in New Mexico,
• The alternative/renewable energy industry with three new solar projects taking place in the County, the announcement of Johnson Plate and Tower this past January and with Sapphire Energy located at the West Mesa Industrial Park.
• And of course our Borderplex growth at Santa Teresa which has seen cross border goods increase by 256% over the past five years.

Finally, his words of advice to local leadership moving forward were to:

1.    Continue our economic diversification,

2.    Build on regional and local strengths,

3.    Think globally, and

4.    To support less unfortunate communities in the region.

Given that Tuesday was Election Day, it is only appropriate that we discuss both the success we have had in economic development and job creation, but more importantly to focus on the future building blocks we need as a region so that we may continue to grow our economy.   As I have mentioned many times in the past, Southern New Mexico is blessed with some very strong assets by which we can grow upon.  But we need to assure that the tools and legislative support is available to do so.  This includes maintaining a strong State economic development marketing effort, maintaining existing incentives, as well as expanding those incentives to support Southern New Mexico growth in the areas of aerospace, border logistical support, alternative energy, and food processing.   And although in Dona Ana County, we look towards the State to support us in many of these efforts, we must also realize that as a community we are equally responsible for taking steps to prepare ourselves to attract growth and that comes in the form of education, infrastructure, and capacity building.  In this respect, MVEDA continually provides assessment and analysis on the challenges facing economic development in our region.  Although MVEDA’s primary focus is on marketing and attracting economic-based jobs to the region, we nevertheless find it necessary to engage in capacity building activities that will assist us in our long-term goals.  Currently, MVEDA is implementing and working on several capacity building directives that include:

• Colonias/Rural Area Labor Assessment:   With the support of an intern from NMSU, MVEDA has designed a bilingual workforce survey which we will be distributing to residents in rural areas.  We are receiving support from PICO to assist us in survey response.  Our first effort will take place in November in Anthony, NM.  We hope to expand this to Sunland Park and Chaparral before the end of the fiscal year.
• Labor Identification Program for Santa Teresa based Employers:  Working in conjunction with DACC, we will be marketing employment services offered through DACC to Santa Teresa based employers.  MVEDA’s analysis through conversations with employers indicates that 60% to 70% of the existing workforce in Santa Teresa comes from El Paso.  We are hoping to offer employers a one stop solution and first point of contact through DACC when they have future labor needs.
• Investment Interest in Santa Teresa:  A second challenge with the workforce in Santa Teresa is the ability to convert them to New Mexico residents.  This is due to lack of housing that is within proximity to the employment base.  We have begun collaborating with the Border Industrial Association, the Building Industries Association, and the Las Cruces Association of Realtors to potentially identify new programs that could be offered to promote and encourage more development in the area.
• Spaceport America Economic Development Strategies:   Finally, MVEDA has been involved with Spaceport America and their consultants in trying to identify clear strategies that we can jointly implement that will assist our efforts in developing business opportunities revolving around the Spaceport and the aerospace industry.

We are hopeful that some of these efforts lay additional foundation for growth leading into the next administration and MVEDA will continue to work closely with the Economic Development Department and the New Mexico Partnership as partners in this endeavor.  Again, MVEDA thanks the Secretary for his time and for all the support he has provided to economic development in Dona Ana County.  We wish him well in his retirement from state government which was announced by Governor Bill Richardson earlier today.

Article courtesy of the Las Cruces Bulletin

By Gabriel Vasquez

Momentous scientific and manufacturing advances have marked the trail blazed by American innovation over the last 200 years.

That innovation continues in the arid desert of southern New Mexico, where private and public research firms are investing their expertise and money into developing green crude from algal fuel.

Photo courtesy of Sapphire Energy

“There is a biofuels revolution in New Mexico,” said U.S. Rep. Harry Teague during a biofuels roundtable discussion Monday, Oct. 11, at the Dona Ana Community College Workforce Center. “It is an industry that has tremendous potential to grow and expand.”

At the roundtable, representatives from Sapphire Energy, the Center of Excellence for Hazardous Material Management, New Mexico State University, the state’s Economic Development Department and the Southwestern Biofuels Association discussed both economic and social implications of developing large-scale biofuel production facilities in southern New Mexico.

“We need to be making energy in America and making jobs in America,” Teague said. “The biofuels industry will help us make it in America.”

The business model for the large-scale production of algae-based biofuel is in its early stages. Already, Sapphire Energy, a San Diego-based company backed by two of the biggest venture capitalists in the world – Bill Gates and the Rockefeller family – has set up a 100 acre test-and-demonstration facility near Las Cruces in preparation for a much larger biofuel production facility.

The company plans to break ground on the 300-acre biofuel refinery in Luna County, near Columbus, early next year.

“We have a very unique technology in that it uses a combination of CO2, algae and non-potable water that delivers a drop-in replacement for transportation fuel,” said Tim Zenk, Sapphire’s vice president of corporate affairs. “We’re talking about algae oil that can be converted and refined to gasoline, diesel and jetfuel.”

Similarly, Massachusetts company Joule Unlimited Inc. is looking at New Mexico to build its first biofuel production facility. Joule President Bill Sims said the state is at the top of his company’s list. The Joule plant, at an estimated 5,000 acres, would create up to 1,500 jobs in the state, he said.

Bringing more energy jobs to New Mexico is also the focus of the Southwestern Biofuels Association, said SWBA spokesperson Maria Zannes. “We’re here about jobs,” she said. “It’s what we focused on when the SWBA first started to develop its statewide plan.”

The SWBA is working with private industry, in conjunction with academia and the state government, to develop a biofuel business model that pays off and creates jobs for New Mexico.

Meghan Starbuck, an NMSU associate professor of economics, has been part of SWBA’s primary counsel in developing that model.

“I’ve been working in biofuels for several years now, and I agree that biofuels is an important and exciting sector,” she said. “As a state and a country, it’s really vital for us moving forward and fixing the economic harm and damage of the last few years.” Starbuck calls the biofuels industry a “combination of high-tech science and agriculture,” the perfect fit for southern New Mexico.

By 2022, the biofuel industry will have to produce 21 billion gallons of transportation fuel to meet national energy standards, Starbuck said. “It will have to come from somewhere, and New Mexico is the place to start,” she said.

A “small” algal biofuel production facility that produces 100 million gallons of biofuel per year, such as the one Sapphire plans for Luna County, would generate about 454 direct and indirect jobs, Starbuck said. The value added to the state’s economy for such a facility would be about $28 million, with $8 million going directly into the state’s tax coffers, she said. Eventually, with several facilities around the state, the industry’s tax revenue could help offset the tax revenue received by the state’s oil and gas industry, which tends to fluctuate unpredictably from year to year. “If we are able to capture 25 to 30 percent of that market it has a large impact on the state,” she said.

The technology is proven, Zenk said – it’s just a matter of making it commercially viable. Already, Zenk’s company has outfitted a car with algal derived fuel that drove cross-country with no problems, and it continues to test other fuels successfully in big rigs and jet planes. “We made molecularly identical jet fuel as the kind you would normally see in a jet,” he said. “In fact, it had a 4 percent higher energy density, which means the plane can fly farther, and because it has a much lower freezing point, fly higher.”

Luz-Elena Mimbela, a researcher at New Mexico State University, said the science behind the algal oil extraction process is well-suited for this area. “You add nutrients such as CO2, nitrogen, phosphorous and trace metals,” she said. “You gently mix the (ponding solution) to keep algae in suspension to maximize its exposure to light. Photosynthesis does the rest.” The harvesting and concentration process is where it gets complicated, she said. “But the technology exists and is available.”

Zenk added that algal biofuel is a “scalable business, cost-competitive with oil, is fungible, has a low-carbon footprint based on its lifecycle and doesn’t compete with other agriculture products.”

Mimbela disagreed; saying that biofuel from algae is still too expensive to compete with petroleum based fuels.

Doug Lynn of the Center of Excellence for Hazardous Materials Management in Carlsbad, which is conducting its own algal biofuel research in conjunction with NMSU, said he’s convinced “algae is going to work.”

“When I first saw this myself, it was inconceivable that we could walk away from this project considering its potential,” he said. “We have to be good farmers. We must learn how to best grow it, manipulate it and make oil.”

To learn more about algal biofuels or the SWBA, visit www.swbiofuels.org.

Article courtesy to the Las Cruces Bulletin

By Gabriel Vasquez

Not many people know about the West Mesa Industrial Park, a 1,820-acre development located on Interstate 10, eight miles west of Las Cruces. It is home to several companies specializing in light and general manufacturing, and more are coming.

Most recently, Alaska Structures (AKS), a company in Las Cruces for more than 10 years, has expanded from its South Main Street facility into the 180,000-square-foot West Mesa building previously occupied by Rea Magnet Wire.

“I can confirm they are now occupying the old Rea building, and have taken over part of the Parkview site as well,” said Davin Lopez, president and CEO of the Mesilla Valley Economic Development Alliance.

The Parkview Metals site, vacant since 2007, stands at 100,000 square feet. AKS leased all but the office space in the building as it continues to consolidate its El Paso operations into Las Cruces.

“(AKS) will need more employees, but I do not know if they are hiring right now,” said Christine Logan, administrator for the city’s Economic Development Department. AKS designs, engineers and manufactures fabric-building systems for extreme environments for both military and commercial use. It recently was awarded a large contract that called for the expansion. Expected employment for the Rea site is 75 to90 employees, city officials said, with a possible expansion of up to 170 employees once the Parkview site is fully operational.

“It’s safe to say, that any local company that expands at this rate can only be a great opportunity for us,” Lopez said.

Although industrial buildings are still available for lease, space on the West Mesa is becoming more of a hot commodity.

“Don Billings has a 6,000-square-foot spec building available on Trigg Loop and NAI 1st Valley is marketing a 23,000-squarefoot facility on Crawford Boulevard,” Logan said. “Although there are not many buildings available, there are several development ready land parcels available through private land owners and the city.”

Current West Mesa tenants include Samson Equipment, which continues to do well and is looking to acquire additional land for expansion. F&A Dairy Products has completed a significant expansion and has recently upped its employment number to 93.

The Sapphire Energy research and development site continues to grow and now employs 24 full-time and has added several interns from New Mexico State University.

Onion producers Barker Produce have a new facility under construction on the West Mesa and Premier Distributing opened a facility there in February and employs 63 people in the park.

For more information on the West Mesa Industrial Park, a city-owned light manufacturing and industry development, call (575) 541-2286.

Sponsored by:

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).