Tuesday, November 11, 2008

Energy policy: Biofuel from algae From the New York Times (Matthew L. Wald): "A Colorado company will break ground early next year on an algae farm that is intended to produce thousands of gallons of substitutes for gasoline and diesel at a rate per acre far higher than current biofuel projects. Solix Biofuels, of Fort Collins, said on Monday that it has raised $15.5 million in capital and will begin with a five-acre plot to produce 'biocrude.' That will in turn be shipped to an oil refinery in place of crude oil, according to Douglas R. Henston, the company chief executive. Investors include on the Southern Ute Indian Tribe, on whose reservation, near Durango, the farm will be located; Valero Energy Corp., the refinery operator; and Infield Capital, an investment fund." From the Solix website: Algae production does not compete with agriculture. Algae production facilities are closed and do not require soil for growth, use 99% less water than conventional agriculture [ed. emphasis added], and can be located on non-agricultural land far from water. Since the whole organism converts sunlight into oil, algae can produce more oil in an area the size of a two-car garage than an entire football field of soybeans... Algae thrive on a high concentration of carbon dioxide. And nitrogen dioxide (NO2), a pollutant of power plants, is a nutrient for the algae. Algae production facilities can thus be fed exhaust gases from fossil fuel power plants, and even breweries, to significantly increase productivity and clean up the air. Update More coverage from the Fort Collins Coloradoan (Cari Merrill): Fort Collins-based Solix Biofuels announced this morning it will build an algae biofuel facility near Durango. The company that focuses on creating biofuels from algae has raised $10.5 million in its first round of outside funding and has a $5 million commitment from investors to be used to build the facility. The Durango facility will be a significant advancement, providing the capabilities to produce thousands of gallons of algae-based biofuel at a rate per acre higher than current projects, according to the company. More Coyote Gulch coverage here. "cc" 8:01:11 AM

Energy policy -- oil and gas: Methane levels rising in domestic water wells in Garfield County Methane levels in groundwater near Silt is a concern and the levels are rising, according to a report written by Philip Yates in the Aspen Times. New Colorado Oil and Gas Conservation Commission rules passed last year are designed to take into consideration the effects on groundwater supplies from development. We'll see. From the article: An analysis of about 700 water samples from 100 water wells and other water sources south of Silt and Rifle shows an increasing presence of methane, according to a consultant who reviewed the data. Geoffrey Thyne, a geology professor at the Colorado School of Mines, said the level of methane detected in those samples, collected over a five-year period, may indicate the presence of natural gas and produced water in area water wells. While produced gas and water may be impacting area wells, it is happening at levels below where the Colorado Oil and Gas Conservation Commission may take possible regulatory action, Thyne said. The impact that methane -- which is a primary constituent of natural gas, according to the Environmental Protection Agency -- may have on area wells is expected to increase as more drilling occurs in the area, Thyne told Garfield County commissioners on Monday. "I think there is a reason to worry about continued development without taking into account what we already know," said Thyne, adding there are now about 1,000 wells in the area he analyzed. "We are seeing a slowly building problem with the more wells we put in. The question is how many wells do we put in?"[...] Thyne, who was hired by the county to review the water data, said his analysis of water samples showed some samples that had greater than 1 part per million of methane and that seem to be related to the 1,000 natural gas wells in the area. He added that most of the high methane concentrations occurred in the central part of the study area, while similar high concentrations were found in the southeast study area. "All wells leak slightly," Thyne said. "Water wells show higher levels of methane because of that." While state oil and gas regulators largely think the high presence of methane may be a false-positive, or mostly a naturally occurring phenomenon, he disagrees with that interpretation. "Most of the domestic well methane [impacts] we see is from produced gas, not from natural fermentation, which some people have alleged," he said. Geological features, like long, linear fractures in the area, may serve as a possible upward conduit for natural gas in the area, Thyne added. While the water samples did not show any significant presence of benzene, which is a known carcinogen, Thyne noted compounds like benzene largely won't be detected 200 feet away from its source. More coverage from the Grand Junction Daily Sentinel (Dennis Webb): Most of the highest concentrations of methane in water appear to be in the Divide Creek area south of Silt, where gas contaminated surface waters in 2004, Geoffrey Thyne told Garfield County commissioners Monday... None of the study's results of water well testing showed any levels of benzene or other drilling-related contamination requiring regulatory action. Methane in water isn't regulated and the gas vents away through bubbling once it reaches a certain concentration, Thyne said. However, the gas can lead to explosions if it is allowed to build up in enclosed areas, which could happen if a domestic water system includes holding tanks in a basement, he said. The county plans to notify water well owners of the test results... [Thyne] said he disagrees with the Colorado Oil and Gas Conservation Commission, which contends that some methane that appears to come from natural gas production in the area instead is originating from biological sources. If so, there would be signs of carbon dioxide resulting from microbial oxidation, he said. The COGCC could not be reached for comment Monday. EnCana spokesman Doug Hock said some natural gas in the Divide Creek area originates close to the surface rather than from energy production. He said EnCana is confident that new state drilling procedures in place in the Divide Creek area are protecting domestic water from natural gas development. More Coyote Gulch coverage here. "colorado water" 7:47:29 AM

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