The Sietch Blog

Feb 27
Procter & Gamble Co and Algae

Written by Rt

My eyes perked up when I ran across this simple press release. Hmmm, says I, why such a low profile?

PetroSun, Incorporated (PINKSHEETS: PSUD) announced today that Gordon LeBlanc, Jr., CEO and Chairman, has been invited to address a Procter & Gamble internal symposium on April 19th in Cincinati, Ohio. The two day symposium is entitled “Innovation for Sustainability and Conservation.” Mr. LeBlanc will lecture on the past, present and future sustainability of oil and alternative energy fuels.

PetroSun is a (comparatively) small oil company - with a difference, “internal symposium”, hmmm.

Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae.

We’ve covered lots of algae, even cancer cures (did we mention the wonderful omega-3?).What made this interesting is the company - Procter & Gamble. A large corp like that has to use lots of fuel so perhaps it is as simple as an alternative fuel source, or perhaps there’s more.

In 2006 it was revealed that P&G had been investigating a flower to provide oil for its products.

If cuphea can overcome daunting production challenges, the cigar-shaped, purple bloom has the potential of cutting Procter’s rising commodities costs, experts say, because its oil can be used as an alternative to coconut and palm oils. These markets are valued in the hundreds of millions of dollars.

If the flower flourishes, Procter could eventually acquire at least 1 million acres of the plant, said Steven Cermak, lead scientist of new crops and products research group at the USDA in Peoria, Ill. Procter gets most of its coconut oil from the Philippines, the world’s largest producer.

But cuphea (koo-FEE-ah) has proven to be a pretty wily flower. After two decades, scientists are still struggling to increase its production, thanks to complications in how the flower releases its seeds. At its current yield, cuphea oil is going for $3 to $5 per pound, which is high — coconut oil goes for roughly 50 cents per pound. Scientists are optimistic they’ll get the cost down to $1 per pound as more seeds are produced, but that could take decades.

Enter algae. It has been known to be a rapid breeder, out-pacing even the legendary rabbit :). It is also a lot of oil (50% in some cases). It is also relatively easy to produce, harvest, and process. It requires no arable land. And best of all, it eats CO2. Perhaps P&G has a CO2 waste stream it isn’t taking advantage of. Hmmm.

All of this is conjecture but if it is even close to the truth then P&G should also talk to GreenFuel to heat up the competition :)