The Future of Biofuels: An Economic Analysis of the Design and Operation of a Microalgae Facility in Texas and the Southwestern United States

The world of energy is changing. With rising energy costs and concerns over thesupply of energy materials, more research is being conducted into alternative sources offuel and microalgae is one of the sources being researched, although much research hadbeen conducted on it as a part of the Aquatic Species Program from the 1970s to theearly 1990s. With the emergence of microalgae as a source of alternative energy, theneed for an economic analysis of microalgae has arisen. This research studies theeconomic feasibility of the design and operation of a microalgae production facility intwo Texas locations (Pecos and Corpus Christi) and in southeastern New Mexico using astochastic simulation model. It examines the production levels needed for the facility tobe profitable and also some facility designs necessary for that profitability. It alsomeasures several annual financial indicators so that potential investors have someestimates of the future profitability of the microalgae industry.The results show that for microalgae to become a viable commercial operation,production must be improved beyond the current levels and the levels suggested by theliterature. Production needs to be at least 0.8 g/L/day with 40 percent oil content and 24 inches of water depth. Production must be improved through increasing growth rates and oilcontents at greater water depths. Production can be improved through nutrient andcarbon dioxide usage, two elements that are being heavily researched. Water usage willbecome a major focus because of the limited resources and the quantities necessary tooperate a commercial-scale facility. With the necessary improvements in technologyand research, microalgae could prove to be a viable source of alternative energy.