Algae Solutions for a Local Energy Economy (ASLEE) Dr Douglas McKenzie CEO Xanthella Ltd

Transcription

1 Algae Solutions for a Local Energy Economy (ASLEE) Dr Douglas McKenzie CEO Xanthella Ltd

2 ASLEE: An Industrial Research Project that will Create a National Asset with Global Impact Can we overcome grid constraint by using locally generated electricity for biomanufacturing and thus create a new industry for our remote and rural areas? Many birds with one stone.

3 The opportunity The West Coast and islands of Scotland have some of the best potential for renewables in Europe GW wind; 7.5 GW tidal (25% of Europe s potential); 14 GW wave (10% Europe). Biomass in CHP.and the pain Grid weakness means that a great many renewable energy schemes are constrained or delayed. If we could use more electricity locally then constraint problems could be reduced or removed.

4 Micro-algae Eukaryotic microalgae and photosynthetic bacteria (cyanobacteria) Major source of O2; major sink for CO2. Important in global weather systems Base of most aquatic food chains Highly diverse with extremophiles. Low ph, high temperature strains Opportunity? Strathclyde University,

5 Algal diversity 5

6 Feedstocks: no need for imports 500 MWh of white light for 1000 l oils 1.8 tonnes CO2 for 1 tonne of algal biomass. Sources: distilleries; anaerobic digestion and combustion gas Nitrogen and phosphate plus other trace nutrients. Rule of thumb 10% nitrogen by weight; 1% phosphate Water: recoverable and algae can be grown in non-potable waters including seawater and waste waters

7 Light is the critical feedstock Solar light Pros: free fuel Cons: intermittent; poor space utilisation; inefficient; doesn t work for Scotland (tell us about it!) Artificial light Pros: high efficiencies; good control Good space utilisation Cons: Expensive use limited to high value products. Electricity cost main factor in affordability. 7

8 ASLEE: Novelty and Innovation Algal biomass is used as feedstock for a wide range of products including pharmaceuticals, nutraceuticals, research tools, pigments, plastics and biofuels. The existing markets for these products has been estimated at 4 billion per annum.

9 Why algae for local manufacture? Wide possible applications ($5Bn annual) High energy use High value/low volume products possible Existing use in Scotland (especially in aquaculture) Feedstock availability: circular economy Suitable for intermittency of light supply Scalable (in both directions)

10 Circular economy: Strengthening rural industry through feedstock coordination REDUCE COSTS FEED REDUCE COSTS LOCAL RENEWABLE ENERGY ALGAE GRID BALANCING CO2 REDUCE COSTS Poor solar resource in Scotland (particularly in winter) means light source must be artificial. High cost of light means focus must be on high value products. AQUACULTURE FEED FEED WHISKY FEED

11 . Target markets (5 tonne production from ASLEE array)

12 Intermittency Output of 350kW Wind Turbine North Atlan c Insola on March 3 - March Wh/m^2 Daily sunshine Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar Daily wind power output Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar Wholesale Electricity Prices Turning on PBR during Low Cost Half Hours 350 Dynamic Frequency Response Propor onal Following of 300kW Load with no Deadband Energy Off Energy On Jan-14 2-Jan-14 3-Jan-14 4-Jan-14 5-Jan-14 6-Jan Load :00 2:00 4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00 22: Daily Electricity prices Hourly frequency balancing

13 ASLEE: The Central Questions How far can we exploit the potential of grid balancing and renewables whilst maintaining economic algal production? Renewable Capacity (How much does intermittency matter? What is the smallest economic scale? what is the potential upscaling?)

14 ASLEE: The Larger Picture Sustainable feed production; Omega 3s; hatcheries Low carbon, distributed & integrated bio-manufacture; stranded resources; ASLEE PROJECT Circular economy; use of CO2, nutrient recovery from waste streams MBC proposal for EMSP; Development in fragile areas; greater use of renewables

15 End users: aquaculture Existing use of micro-algae in aquaculture in Scotland: 1: Feed for rotifers used in Wrasse production. Currently met by importing algae pastes from Japan by air 2: Feed for juvenile oysters. Bag production (inefficient and high space requirement) Future use: 1: Salmon feed supplement delivering high value omega 3s, astaxanthin, protein and vaccines 15

16 Source: Viv Crampton, EWOS The salmon aquaculture industry is facing a shortfall in supply of omega 3 fatty acids with rising demand but no sustainable increase in supply from wild fisheries. Omega 3s are the main differentiator of Scottish salmon in the global market and thus it is crucial that supply is maintained. Microalgae are the best source of omega 3s, leading to increased interest from the aquaculture industry in algae. 16

17 The future is green? Omega 3 from algal sources, particularly autotropic algae using CO2 as an energy source is the ingredient that Marine Harvest feed COO Ben Hadfield sees as the most promising Intrafish Media 10/12/2015 Algal supply would remove concerns over security of supply and quality; sustainable and allow much closer integration of omega 3 supply with feed manufacture. Could completely decouple salmon feed production from both marine and terrestrial sources. Can it be cost-effective? Ability to reduce electricity costs through renewables and potential grid balancing income will also help support the Scottish aquaculture industry 17

18 Project Partners MERL

19 The project: stage 1 Two 4000l modules to answer questions of technical risk: Establish productivity using variety of commercial algae: optimised algae protocols Systems integration Determine effects of intermittency on model species of algae (wind; grid balancing; optimisation of energy tariffs): operational cost-benefits Develop business and operational models Plan for stage 2 deployment Engagement with non-core partners and business development for stage 2

20 The project: stage 2 32,000l arrays to establish business case: MERL/Ardtoe Integration with estate renewables and businesses: suitability of algae for oyster production and other products Suitability of algae for rotifer feed Suitability for oyster feed Identify opportunities for scale up and wider use Circular and low carbon economy questions Rural business development opportunities: establish income streams Legacy

21 Thank You.