Why Are Algae So Expensive?

Algae Farming Applications

Algae farms grow algae for uses like food coloring, fertilizer, bioplastics, chemical feed, medicines, pollution control, and fuel. Algae can also be food for humans or supplements.

The production cost is high because algae growth requires energy to circulate gases and dry the biomass. Algae farms use water efficiently. Liquid and air flow through tubes, creating circulation with limited energy.

Although energy-dense, producing algae oil is costly. Costs could fall if production moves offshore. Most algae yield 5,000 to 10,000 pounds per acre.

Challenges in Algae Production

Lower energy density and material costs make algae biofuels expensive for heat production. This contradicts efficiency goals to reduce energy use and emissions. Labor, water, and energy contribute to the high production cost per kilogram. Algae will likely be used in small amounts with big impacts, like replacing fish oil in margarine.

Challenges of large-scale production keep algae expensive. As production rises, costs may fall but likely remain high. Algae offer good nutrition and can be produced efficiently, but have palatability and production hurdles to overcome as a mainstream food.

Commercial Potential of Algae

Algae’s commercial promise has spurred aquaculture advancements. Over 155,000 acres of Porphyra seaweed produce 4,000-5,000 metric tons annually in Japan, generating more income than other marine products. Laminaria is also widely farmed in Asia. Mass cultured Chlorella and Scenedesmus could help address food deficiencies given their high protein and nutrients.

Algal Oil Conversion to Biodiesel

Algal oil conversion to biodiesel requires transesterification using methanol to favor production. Different algae species have 20%-80% oil suitable for fuels like biodiesel and kerosene. However, algae shares monoculture concerns with agriculture.

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