Sep 10 2009

The Pentagon Embraces Algae

Posted by: Jonathan Marshall

On Tuesday, NEXT100 reported that algae is hot--a prime target of venture funding for the next generation of biofuels.

Now it's getting even hotter.

South San Francisco-based Solazyme, Inc.--a microalgae biotechnology company named by BusinessWeek as one of "25 companies to watch in Energy Tech"--reports that it has been selected by the Pentagon to "research, develop, and demonstrate commercial scale production of algae-derived advanced biofuel that meets the United States Navy's rigorous specifications for military tactical platforms."

If successful, the transition to high-performance biofuels would reduce dependence on foreign oil, a national security issue, and reduce the U.S. military's enormous carbon footprint. (It burns more than 10 million gallons of fuel a day, according to Forbes.)

Just as the Department of Defense played a major role in promoting the early Internet, so it is pumping up advanced green tech. Last December, the Defense Advanced Research Projects Agency awarded $35 million in contracts to General Atomics and Science Applications International Corporation (SAIC), both based in San Diego, to investigate biofuel alternatives to military jet fuel.

Given that the military fuel market alone is worth $12 billion a year, investors are taking notice.

Said Paul Bollinger, a vice president of SAIC, "The military has the potential of serving as a market initiator and the airlines as a market maker."

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