Jones wrote:

Locating and owning optimum sites for algae farming could
replace exploration and drilling. While they wouldn't be the same
sort of refineries, oil company engineers could do what they do
best, designing and implementing the large scale chemical
processing plants that give us our present petroleum products.
Let's face it.  These guys are really good at pumping and
chemically transforming huge amounts of liquid and gaseous
stuff.

Steven Vincent Johnson wrote:

I agree. One would think that algoil "refineries" would be right up
their alley. I hope some junior oil exec is doing his best to plant
the seeds of corporate expansion.

"Exxon-Algoil. If it's good enough for our stock holders, it's good
enough for Independent Republic of Texas."

Hi All,

At least Shell is giving it a try.

Jack Smith

JOINT PRESS RELEASE from Shell Oil and HR Biopetroleum,
12-11-07, by WEBWIRE

http://www.webwire.com/ViewPressRel.asp?aId=54866

``Shell and HR Biopetroleum build facility to grow
algae for biofuel Royal Dutch Shell plc [limited
liability company] and HR Biopetroleum today announced
the construction of a pilot facility in Hawaii to grow
marine algae and produce vegetable oil for conversion
into biofuel.

The announcement is a further step in Shell's ongoing
effort to develop a new generation of biofuels using
sustainable, non-food raw materials.  Algae hold great
promise because they grow very rapidly, are rich in
vegetable oil and can be cultivated in ponds of seawater,
minimising the use of fertile land and fresh water.

Shell and HR Biopetroleum have formed a joint venture
company, called Cellana, to develop this project, with
Shell taking the majority share.  Construction of the
demonstration facility on the Kona coast of Hawaii Island
will begin immediately. The site, leased from the Natural
Energy Laboratory of Hawaii Authority (NELHA), is near
existing commercial algae enterprises, primarily serving
the pharmaceutical and nutrition industries.

The facility will grow only non-modified, marine
microalgae species in open-air ponds using proprietary
technology. Algae strains used will be indigenous
to Hawaii or approved by the Hawaii Department of
Agriculture. Protection of the local environment and marine
ecosystem has been central to facility design. Once
the algae are harvested, the vegetable oil will be
extracted. The facility's small production volumes will
be used for testing.

An academic research programme will support the project,
screening natural microalgae species to determine which
ones produce the highest yields and the most vegetable
oil. The programme will include scientists from the
Universities of Hawaii, Southern Mississippi and Dalhousie,
in Nova Scotia, Canada.

An advantage of algae is their rapid growth. They can
double their mass several times a day and produce at least
15 times more oil per hectare than alternatives such as
rape, palm soya or jatropha. Moreover, facilities can
be built on coastal land unsuitable for conventional
agriculture. Over the long term, algae cultivation
facilities also have the potential to absorb or `capture'
waste CO2 directly from industrial facilities such as power
plants. The Cellana demonstration will use bottled CO2 to
explore this potential.

"Algae have great potential as a sustainable feedstock
for production of diesel-type fuels with a very small
CO2 footprint," said Graeme Sweeney, Shell Executive Vice
President Future Fuels and CO2. "This demonstration will
be an important test of the technology and, critically,
of commercial viability".

"HR Biopetroleum's proven technology provides a solid
platform for commercial development and potential
deployment worldwide," Mark Huntley, HR Biopetroleum Chief
Science Officer said. "Shell's expertise and commitment
to next generation biofuels complements our own strengths,
and makes this a truly collaborative partnership."

http://www.shell.com/aboutshell

http://www.HRbiopetroleum.com


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