Sapphire Energy, an algae biofuel company, received almost $104.5 million through the American Recovery and Reinvestment Act.  The six year old company had raised $100 million in private investments by July 2009.

(Sapphire’s founder Jason Pyle)

Liquid fuel produced from algae is celebrated as a shoe-in to replace petroleum oil fuels.  Gasoline, diesel, and jet fuel can be made from the microscopic plants which can grow and be harvested in a day.

Sapphire has had successful trials with its product.  This time last year, they partnered with Continental Airlines for a successful test flight of a Boeing 737 on their algae oil.  Sapphire was also the first algae company whose jet fuel was approved by the American Society for Testing and Materials. 

A commercial-scale production plant is expected by 2010, and 750 jobs are estimated to be created by this round of funding.

Sapphire was mentioned in Fast Company this summer, as one of several algae companies that had received major investment support.  Among the others:  Algenol Biofuels ($800 million from Sonora Fields), Synthetic Genomics ($600 million from Exxon), Solazyme (with $76 million from Chevron).

Sapphire was one of nineteen “bio-refinery projects” awarded money by the departments of Energy and Agriculture.  Energy Secretary Steven Chu called these biofuels “critical to building a cleaner, more sustainable transportation system in the U.S.”  The more than $600 million package backs up $1.3 billion in private investments in the companies.

SOURCES

1.  Schwartz, Ariel.  Fast Company.  Five Companies that are Turning Algae Into Energy.  29 July 2009.  Accessed:  04 Dec 2009.  http://www.fastcompany.com/blog/ariel-schwartz/sustainability/when-will-we-see-commercial-scale-algae-fuel.