Solix Biofuels is a direct intellectual descendant of the U.S. Department of Energy’s Aquatic Species Program started in 1978 to explore ways to produce biodiesel from algae. When the program concluded in 1996 at the National Renewable Energy Lab in Golden, Colorado, the final program close-out report concluded that, in spite of many impressive accomplishments — especially in the biological sciences — “the high cost of algae production remains an obstacle”. The key barriers in 1996 were:

• Low cost of conventional fuel (diesel prices were hovering around $1.10 per gallon).
• No monetary value for carbon mitigation capability of biodiesel.
• Higher than expected cost of the production system.
• Lower than expected productivity of outdoor open pond system.

A decade later, the world is different: Diesel is selling decisively at or above the $3.50 mark; the monetization of carbon is well underway in Europe with the US expected to follow soon; and a robust market for renewable biofuels had emerged.

In April 2006, the algae-based biodiesel gauntlet was taken up by a proven team of engineers and entrepreneurs armed with a breakthrough design for a closed algae growth system that is cost competitive with open systems. With initial funding in hand, Solix Biofuels came on stage, ready to turn the promise of research into commercial reality.

By August 2006 a first generation prototype had been built, tested, and analyzed, and a second generation prototype was launched. And the adventure is just beginning.