Companies Developing Modified Algae for Biofuel Production

Earlier this year, I completed several blog entries that provided brief profiles of companies developing modified microorganisms, plants or algae for improved biofuel production. The field has, of course, continued to develop in the several months since those entries, and not only have the originally-profiled companies announced new business and scientific developments, but other companies have announced their presence or have otherwise come to my attention. In view of the dozens of companies profiled in the earlier entries, it really isn’t feasible to continually update their profiles, particularly since links to company websites are included in each profile, but in this and the next several entries I will profile some of the additional companies that have entered the field or whose activities I’ve recently learned about. 

A number of companies are reported to be using advanced biotechnology to improve the algal strains that are, or might be, used to produce renewable fuels like biodiesel, jet biofuel, or ethanol. Many of these companies were profiled in an earlier blog entry. The following are profiles of three additional companies in this sector, which have been adapted or excerpted from company websites and/or other publicly available information, and I don’t assume any liability for the accuracy, comprehensiveness or use of the information. 

Photon8 is a Brownsville, Texas based company that is utilizing what it calls a “financials-first” strategy, to enable technology developments capable of 100-fold reductions in capital and operating expenses for the production of fuels from algae. Locating in Brownsville gives the company access to optimal algal growth conditions and a partnership with the University of Texas-Brownsville, where the company operates its offices and labs in the university’s “International Innovation Center”.  The company has not said much publicly about its technology strategies, but it has said that it is using genetic technologies to enhance the ability of algae to produce lipids; it is developing a Parallel Film Reactor (PFRsm), with “Traveling Wave Technology” that will offer closed-system performance at lesser cost than an open system and which makes full use of injected CO2; and that it is developing strategies to remove lipids from the algae without dewatering and without killing the cell, and thereby allowing reuse of algal cells.

In October 2010, the company announced that it has succeeded in producing “drop-in” fuel components from its genetically improved algae, as determined by an outside laboratory using gas chromatography analysis for determining carbon chain length and degree of saturation. The company’s president and CEO, Brad Bartilson, has been quoted as saying “the process is simpler than those who propose producing ‘green crude’ and sending it through an oil refinery hydrotreating system. We have already achieved the productivity of 5600 gal/acre/year, and most importantly, within our confines of under $10/m2, leading to a cost of jet fuel components of less than $1.50/gallon.”

TransAlgae was founded in 2008 to commercialize biotechnologies based on development and breeding of transgenic algae to enable its cost-effective conversion into oil, protein and other co-products. TransAlgae is a registered USA company, with a research center located at the Weizmann Science Park in Rehovot, Israel. TransAlgae believes that undomesticated algae are incapable of providing cost-effective production solutions to the world’s needs, just as wild plants cannot produce foods. The company believes that meeting  feed and fossil fuel needs for both the long term and short term can only come by domesticating algae with the requisite genes by genetic engineering, to enable algae to fix large amounts of carbon dioxide into biological molecules, such as carbohydrates, protein and oil with favorable economics.

TransAlgae hopes to build the framework for algal biofuel and animal feed using genetic engineering combined with practical agricultural, industrial and economic approaches. The company’s scientific team has completed its first generation of transgenic algae, and is further developing its marine algae platform to be resistant to contamination by other algae and other organisms, reducing downtime in production facilities, as well introducing genetic failsafe mechanisms that preclude the transgenic algae from reproducing in natural ecosystems. In addition to higher productivity, the company says that genetic approach enables rapid growth, and the production of multiple high-quality products.

TransAlgae has developed novel technologies for gene insertion, has introduced into algae genes encoding resistance to herbicides that can be used to control wild algae and cyanobacteria using sub micromolar levels, and is introducing genes that control other contaminants as well as genes that prevent establishment of the transgenic algae in natural environments. On top of this platform TransAlgae is adding genes for improved protein content as well as genes encoding expensive feed additives, while modifying the algae to increase digestibility. TransAlgae is developing strains that are appropriate for different environments and system designs. By developing strains for a matrix of climates, resources and co-products, the company hopes to be able to rapidly deploy stocks worldwide, allowing its partners to meet demand and respond to changing market conditions.

In November 2009, TransAlgae announced that it had  signed a Memorandum of Understanding with Endicott Biofuels, LLC, a Houston-based, next-generation biodiesel producer, for the development of algae as a potential transportation fuel and renewable chemical feedstock source.

Viral Genetics is a biotechnology company whose primary business is the discovery and development of  immune-based therapies for HIV and AIDS using a proprietary thymus nuclear protein compound. Founded in 2000, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant tumors. The company has recently announced an expansion of its efforts to encompass work in algal biofuels. Company advisor Dr. M. Karen Newell originally of the University of Colorado and now at the Texas AgriLife Research Blacklands campus, has discovered a trigger that increases oil or lipid production in plant cells, which leads to the possibility that plant or algal cells can be manipulated to produce more oil. Viral Genetics has licensed the right to develop commercial applications for Newell’s biofuel discoveries. Newell recently received a $750,000 grant from the Texas Emerging Technology Fund to expand research into developing plant-based fuels. Viral Genetics has the exclusive right to develop commercial applications for this technology.  The company’s CEO Haig Keledjian was quoted as saying, “this grant validates an exciting line of research into increasing yields of plant oils including algae bio-fuel and agricultural oils such as palm or corn oil,” and company advisor John Sheehan has said, “Viral Genetics is in the right place at the right time with this technology. Identifying and controlling the trigger for lipid production in algae has long been the holy grail of algal biofuels technology. Many big players are working in this field, and whoever is first to translate such a discovery into an economic process will leap frog to the front of the pack.”  

Breaking News: On December 7, 2010, just a day after I originally posted this blog entry, Viral Genetics announced that it has launched a subsidiary called VG Energy, Inc. to market the biofuel technology that I’ve described above. This subsidiary is majority-owned by Viral Genetics and its current shareholders, and Viral Genetics’ CEO Haig Keledjian will serve as CEO of the new subsidiary. According to the company’s press release, VG Energy will be marketing an algae-enhancing technology (described above) which the company says has been shown to increase the yield of oil production from algae by as much as 300%. Dr. Newell-Rogers said, “Our research seems to indicate that we can trigger plant cells to increase their fat stores. We can manipulate plant cells so that they store oil and eventually release those reserves instead of burning the fat for fuel when glucose stores are low. The end result is more oil is available for processing into a biofuel.”

According to the new company’s website, their technology is embodied in a portfolio of patents and patent applications relating to what it calls “Metabolic Disruption Technology” (“MDT”) in non-human cells. MDT encompasses the use of combinations of certain proprietary compounds and processes to change how cells use fat and sugar for energy. The MDT technology led to the yields in oil production described above, and the company says it also has the ability to increase oil storage in seeds for increased production of edible oils. VG Energy will be focusing on scaling-up the technology and seeking industry partnerships and licensing deals.

D. Glass Associates, Inc. is a consulting company specializing in several fields of biotechnology. David Glass, Ph.D. is a veteran of nearly thirty years in the biotech industry, with expertise in industrial biotechnology regulatory affairs, patents, technology licensing, and market and technology assessments. This blog provides back-up and expanded content to complement a presentation Dr. Glass made at the EUEC 2010 conference on February 2, 2010 entitled “Prospects for the Use of Genetic Engineering in Biofuel Production.” The slides from that presentation and Dr. Glass’ September 2010 talk on biotechnology regulations from the Algae Biomass Summit, along with more information on D. Glass Associates’ regulatory affairs consulting capabilities, are available at or at


4 thoughts on “Companies Developing Modified Algae for Biofuel Production

  1. Tweets that mention Companies Developing Modified Algae for Biofuel Production « Advanced Biotechnology for Biofuels --

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  3. Dear

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  4. OriginOil announces new research agreement with U.S. Department of Energy’s Idaho National Laboratory, OriginOil will work with DOE’s office of biomass programs to create standards for algal biomass.

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