Business evaluation of a green microalgae Botryococcus braunii oil production system

Business feasibility of oil production using the green alga Botryococcus braunii has been studied for a conceptually designed, 19-hectare (ha) semi-open pond type oil producing plant. B. braunii is known to produce triterpenic hydrocarbons, such as C34H58, with high purity. The construction cost was estimated to be 200M(sic) (2.35M$) and the operation cost was 200M(sic) (2.35M$), or 10.5 M(sic)/ha.year (= 124,000$/ha.year). The plant achieved a net energy gain in operation with an energy consumption ratio (ECR) of 2.80. Based on the total sales of the hydrocarbon oil produced and the operation cost balance considerations, the breakeven point oil price was 107 (sic)/L. By utilizing corporate financial analyses methods, the capital value of the oil producing company was estimated. The analysis methods described in the present study can also be applied to other oil production companies that use microalgae. We found that the initially invested capital increases approximately three times through successive business years when the oil price is 130 (sic)/L. In conclusion, several considerations introduced in the present study suggest that the algal oil production business will become strongly competitive in the fuel market by mid-twenty-first century. (C) 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of International Organizing Committee for AOAIS-1