The prospect of algae production holds a great level excitement today in the biomass industry, where fuel is derived from recently living organisms. Algae – due to a highly accelerated growth rate – potentially yields fifty to several hundred times the oil per acre than soybean or corn based crops. The reason this biomass has not yet been widely adopted has historically been an issue of cost. Yet Sue Kunz and American BioResources believe they have created a system that overcomes this hurdle and will allow America’s farmers a broader stake in the new energy economy. In an industry where some companies are waiting on the development of genetically modified algae super-strains, American BioResources has not let the perfect stand in the way of the good and utilizes a well-known strain of algae, instead applying its energies to optimizing the processes that enable efficient oil production.
What American BioResources plans to offer farmers is a closed-loop algae production system along with a remote sensing and monitoring platform to ensure the system is running properly. The company will guarantee to purchase and pick up the algae produced at these locations, with the price largely determined by market forces. While the Denver based company will not reveal the specifics of the financials for customers, CEO Sue Kunz says that the company’s basic system will cost “less than a tractor” for purchase and installation. The system is housed in 2000 square feet of space and farmers can quickly expect to generate revenues over $1,000 per month moving up to $3,000. The company seeks to find many farmers in a given area, ideally one close to a biorefinery, to minimize transport costs.
Sue Kunz, who brings on wealth of experience from the IT world including founding and serving as CEO of Solidware as well as serving in senior management roles at Sun Microsystems and IBM, was added to the American BioResources’ team late last year. On her decision to move into the clean technology space Kunz notes the “huge IT play” in the area – like the equipment and software utilized at American BioResources – as well as seeing similar challenges including “process control and data problems.” Kunz’s beliefs and experience have reinforced the company’s focus on “engineering rather than science.” The company’s closed loop system enables the firm to “control every element of the process” from the food mixture to the light. According to Kunz, with each of these elements the company’s focus is to “make it work, make it good, make it better.” Instead of tinkering around with the same problem forever, Kunz notes the company works to “hit key metrics” and then “create a process.”
The company has been successful in achieving its targets on a bench scale and is now working to finalize the development of its full scale system. Kunz hopes the company can install about a half dozen units this year and notes strong interest among farmers. Simultaneously, the company is working to identify areas where a large number of systems could be installed to optimize its hub and spokes model. One potential area is Alamosa, Colorado, where many potato farmers have expressed interest in the diversification – and revenue stream independent of local weather – that algae production could provide.
While American BioResources is firmly focused on getting the engineering right, Kunz acknowledges that biological advances are likely to play a role in algae’s continued and future use a biofuel. Moreover, Kunz believes the company’s system, designed for “extreme flexibility,” is well positioned to work with whatever industry determines the most profitable use for the oil-rich raw material. Having watched a few companies rise and fall during her years in IT, Kunz brings a valuable insight to the nascent industry of biomass production: “if you move quickly enough you can lead.”
