Algae cultivation for biofuel applications is full of promise and hype.  Until one of the many companies working on the puzzle solves the cost issue -- algal biofuels remain a well-funded science project.  But now, OriginOil might have solved a few pieces of the cost puzzle with new lighting and new extraction technologies.

Harvesting oil from algae is an expensive and difficult challenge.  Algae must be separated from its growth medium -- water -- and the lipids in each algae cell must be extracted.  Companies are researching a variety of ways to filter the algae from water and to liberate the lipids from the algae -- ranging from chemical catalysts to bioconversion.

OriginOil (OTCBB:OOIL) is a small cap early-stage algae farmer looking to use their Helix BioReactor to evenly illuminate algae and create large amounts of biomass.  They recently signed a CRADA with the DOE's Idaho National Laboratory and hope to use ultrasonics and microwaves to crack algal cell membranes.

The firm's process combines electromagnetism and pH modification (using CO2)  to break down cell walls, and release the oil within the cells. Algae oil rises to the top for skimming and refining, while the remaining biomass settles to the bottom for processing as fuel and other co-products.

According to the company, in less than an hour, the oil, water and biomass separate by gravity alone and unlike conventional systems, no chemicals or heavy equipment are used in the one-step process.  No initial dewatering is required.

If OriginOil’s claims are true -- it might be on its way to bringing algae fuel pricing to “pump parity,” the only metric that really matters in bringing this technology to commercial reality.

The April issue of the Greentech Innovations Report dives deep into the algae pond.  You can subscribe to it here.