Math Problems

The problem for alternative energy technology today is widely known—solar and wind power require large areas of land and government subsidies to survive. For interesting new biofuel sources like ethanol and algal oil, the math is stacked equally high against them—if not higher.
 
While creating oil from algae may be about the cleanest source of energy possible, it’s also far from economically viable. With current technology, the National Renewable Energy Laboratory (NREL) estimates an acre of algae can yield approximately 1,200 gallons of oil for an estimated cost range of $4-$40 per gallon. While far better than other biofuel sources, scale this against more traditional sources—one barrel (42 gallons) of crude oil currently costs approximately $78. Using NREL’s estimates, algal oil would range from $168 to a whopping $1,680 per barrel. And one barrel of algal oil would require about two acres of algae—considering US oil consumption is millions of barrels a day, it seems algal oil has a major math problem using current technology.

 

Ethanol has similar though lesser issues. Currently, making ethanol costs competitive requires government subsidies of approximately $1.78 per gallon when distilled from corn (which drives up prices in the grocery store as a side effect). When ethanol is distilled from non-food sources like cellulose, the government subsidy is higher—nearly $3 per gallon. We could import cheaper ethanol from abroad, but high tariffs get in the way.

 

It seems the technology making these sources sensible is far off—and all the while, energy producers in more traditional fields aren’t standing pat. Oil, natural gas, and coal have a decades-long head start in developing technology to access harder to reach sources and making them economical. Biofuel sources like algae and ethanol have huge gaps to close before they’re truly viable.