As the need for alternative sources of fuel beside the fossil fuel arises, algae fuel has started to draw attention. The Algae fuel release carbon dioxide as fossil fuel when it is burnt, but the growing of more algae will absorb the carbon dioxide unlike the fossil fuels. Sapphire Energy has announced that it has funded 144 million dollars out of 300 million aimed to turn algae into gasoline.
In recent years several startups have emerged to create fuel out of plant material, all hoping to lure people away from gasoline made from crude oil. Solazyme, Algae.tec, and Sapphire Energy all dominate the space, trying to edge not only each other, but oil companies as well.
All three companies covert algae into a petroleum replacement, one that can work with the traditional cars we already have on the road.
Creating green crude, a substance that is converted into jet fuel, automobile gasoline, and biodiesel, is a process that has been around for several years. However, Sapphire’s recent investment proves that the technology is still going strong and we could very well all be driving around on algae-based gas sometime soon. Sapphire has gained a lot of traction by signing deals with Continental Airlines and Boeing to test out algae-based jet fuel, and the company partnered with Toyota to create an algae powered Prius.
Monsanto was one of the investors in this round and the company has been using Sapphire’s technology for its own genetic modification needs. Arrowpoint Partners and other private undisclosed investors led the round as well. This $144 million third round brings the green tech company’s total to $300 million.