Viaspace, General Atomics, Others Pursue Biofuel

Biofuels output and investment appears to be temporarily stalled due to a global economic downturn. But Viaspace estimates a near-term biofuels market of $25 billion yearly. The company aims to grab its share without delay.

VIASPACE Inc. (OTC Bulletin Board: VSPC) today announced the Company is cultivating a new fast-growing hybrid grass to be used for production of cellulosic ethanol, methanol, biocrude and green gasoline. VIASPACE is taking a leadership position in the development of feedstock for sustainable biofuels, targeting the growing $25 billion global biofuels market. The Company is working to develop supply contracts with companies in China and also expand into other worldwide markets. VIASPACE expects to generate $20 million in revenue in the next two years selling this high-yield grass for alternative fuels as well as livestock feed.

In fact, the time to develop alternative fuels is while the price of petroleum is low. Then when the price rises, you will be in a position to take immediate advantage of marginal prices--while your competitors are still struggling to develop financing and develop production methods.

General Atomics, in San Diego, is forming a partnership with Eastern Kentucky University to develop a profitable algal biodiesel operation.

Eastern will use a $4 million appropriation in the U.S. Defense Department budget secured by Congressman Ben Chandler, D-Versailles, and up to $1.5 million more in state and local funding to create a Center for Renewable and Alternative Fuel Technologies (CRAFT). It will utilize 250 acres in the Clark County Industrial Park to determine which non-food plants will produce the best bio-diesel fuel. The process will use algae in tanks rather than ponds to break down the cellulosic – non-food parts of plants and materials such as wood products, switch grass, or even tobacco stalks – materials.

The project is in two phases, according to EKU President Doug Whitlock. If the initial research phase at EKU is successful, General Atomics will construct a production facility in Clark County

Another industry looking into developing algal fuels is the aquaculture industry of Southeast Asia. A high proportion of seafood served in restaurants worldwide is produced via aquaculture. The profitable industry is looking for diversified investments, and algal biofuels seems like a good fit.

Microalgae comprise a vast group of photosynthetic, heterotrophic organisms which have an extraordinary potential for cultivation as energy crops, experts say.

They can be cultivated under difficult agro-climatic conditions and are able to produce a wide range of commercially interesting byproducts such as fats, oils, sugars and functional bioactive compounds.

Certain microalgae are effective in the production of hydrogen and oxygen through the process of biophotolysis while others naturally manufacture hydrocarbons which are suitable for direct use as high-energy liquid fuels. _Bioenergy