The global microalgal biofuel market was estimated to be valued at $6.43 billion in 2019. The industry is currently growing at a rapid rate, with a projected CAGR of 8.8% until 2028 (figure 1) (Grand View Research, 2020). And there is a promising potential of microalgae to produce biodiesel, bioethanol, hydrocarbons, and drop-in biofuels. However, the growth of this market has been restrained due to difficulties in making biofuels an economically sustainable alternative energy source and the decommission of significant microalgae-based biofuel commercial projects (Maritime, 2019). If the industry is able to shatter the barriers associated with raw material production, production volume, and capital costs, it will experience a blooming growth.

Recently implemented microalgae mandate as well as the legislations regarding crop limitation in usage for 1st and 2nd generation biofuels is likely to drive a significant influx of investment for R&D. With the US Department of Energy of the announcing an investment of $34 million in waste and algae bioenergy technology in 2021, it is likely that other government agencies will follow this example to reduce net carbon emissions (Grand View Research, 2020). The possibility of employment of wastewater to cultivate microalgae makes it a more attractive strategy for biofuel feedstock production when compared to crops such as corn stover, cassava, corn, sugar beet, sweet sorghum, or switchgrass, which require large cultivation areas and clean water sources. Another factor driving growing biofuel demand is the raising awareness of the public about the scarcity of fossil fuels, their volatility in supply, and their impact on the planet. According to the International Energy Agency, this collective consciousness is expected to increase global demand for biofuels by 28% in 2026 (IEA, 2022).

A particularly potential form of microalgal biofuels is biodiesel, which have experienced a major governmental boost in the form of tax breaks in the past decade due to its high energy-efficiency. This is especially true for European countries such as Spain, Germany or France, which permit full tax exemptions for specific volumes of biodiesel (European Commission, 2021). As mentioned before, this energy source still faces large-scale commercialisation challenges due to its high production cost, that mainly stems from difficulties in the operation costs and the extraction of algal oil. Some efforts have been made to extract fatty acids, including hexane extraction, oil expellers, and CO2 fluid extraction. However, these techniques remain too expensive to make the biodiesel price competitive with that of petrol (Alisha et al., 2017). The use of genetic engineering strategies could offer alternatives to lower the cost of biodiesel.

Regional Insights

Due to heavy investment and governmental support, North America is expected to emerge as the largest regional market by 2018, followed by Europe. Although both regions follow a similar pattern of growth in the use of microalgal biofuels, North America is expected to prioritize the use of bioethanol, whereas Europe appears to favor the use of biodiesel. Other important layers in the forecasted periods are China, India, and Japan (Grand View Research, 2020).

North America is expected to be the fastest growing market due to its high rates of investment in R&D in microalgal technology. Current advancements in the increase of the photosynthetic activity in the bioreactors has triggered a more productive extraction of microalgal growth, bringing a positive prospect to the future expansion of the market. Another important milestone in regional politics is the mandate imposed by the U.S. government to shift the production of biofuels from food-based crops to microalgae (EPA, 2015), which will likely to translate into an expansion of the microalgal biofuel market share.

Europe is striving to be the largest growing market by boosting non-conventional sources of energy through diverse government policies. The government of the UK seeks to meet aviation fuel needs through the use of biofuels, ensuring that the net carbon used as well as operational costs are significantly reduced. Germany is also pushing the use of biofuels through subsidies and incentives, expanding the research and development of academic institutes and manufacturers (BMUV, 2021). The large amount of R&D projects, the robust industrialisation, and the research-intensive corporate culture in the nation are factors that are likely to make the country the spearhead of the European Union in terms of algal biofuel technology.

Competitive Landscape

The microalgal biofuel market is a fragmented market with no clear nominate players. The market is still relatively new and, as mentioned before, is not fully developed yet. In any case, the main players of the industry are Abengoa Bioenergy S.A., POET LLC, Archer Daniels Midland Company, Cargill incorporated, and Renewable Energy Group Inc.

Bloomaid is a supplementary microorganism for microalgae that seeks to maximize lipid synthesis for biodiesel production. The process employs a genetically modified bacterium, which, through a two step process, increases the algae biomass in the bioreactor to then maximize their lipid content. The process works through two mechanisms coordinated by a light induction. The first mechanism diffuses the phytohormone auxin which in turn increases the size and number of the cultivated microalgae. The second mechanism absorbs and accumulates phosphate in an insoluble form (polyphosphate) inside of the GMM, ensuring the microalgae to undergo nutrient starvation and, as a result to increase their lipid content (figure 1 presents a visual representation of this process).

Our cultivation method seeks to not only increase the productivity of bioreactors in both the production of microalgal biomass and oil, but also to clean bodies of water that are under the risk of eutrophication. The high rate of phosphate uptake by the GM bacteria will result in the depletion of harmful quantities of nutrients that are responsible for algal bloom, which leads to rise in oxygen concentration in bodies of water and subsequent oxygen-induced toxicity and loss of biodiversity (Chislock et al., 2013).

Application of the technology in photobioreactors.

Before applying the GM bacteria in the biorreactor, the client should provide information around the dimensions and the fluid mechanics of the bioreactor. Also, a set of considerations around the conditions of the growth medium should be considered, these include the availability of carbon, nitrogen, and phosphate in the medium, as well as if the wastewater being used has been previously sterilized. All these parameters will be introduced into our model, which will determine the optimal concentration of bacteria that should be introduced in the bioreactor to ensure an optimal consortium.

The first part of the process seeks to increase the concentration of auxin in the medium. The concentration that will be aimed for will depend greatly on the species of microalgae being cultivated. For example, in the microalgae Scenedesmus sp. LX1, the optimal concentration of auxin in the media to ensure maximum growth is 1 mg/L, which leads to an increase in biomass from 3.58x10^6 cells/ml to 4.48x10^6 cells/ml (Guo Hua et al., 2018). When the microalgal biomass is determined to be maximal, the microalgal colony will be transported from the monochromatic photobioreactors to the open raceway ponds, where the exposure to unfiltered sunlight will promote a change in the function of the our bacteria, leading to the beginning of the second phase of the microalgal co-cultivation process.

Upon light-induction, the bacteria will stop producing auxin. The reason why this halt in the production of the phytohormone is required is that in lipid accumulation, auxin shows a low-dosage promotion and high dosage inhibition effect. In Scenedesmus LX1, the optimal auxin concentration in the growth medium for lipid accumulation is 0.1 mg/L, with higher concentrations punishing lipid accumulation in a higher magnitude than lower ones (see graphic 1) (Guo Hua et al., 2018). It is therefore fundamental that auxin production is stopped to maximize lipid availability. Additionally, controlling auxin concentration in the medium also allows for the control of the fatty acid composition of the microalgae, which is particularly useful for increasing the concentration of monounsaturated fatty acids (MUFAs) (Guo Hua et al., 2018). This type of fatty acid is optimal for biodiesel production due to its low temperature fluidity and its oxidative stability (Ambreen et al., 2018). When auxin is reduced to 0.1 mg/L due to the absorption of the microalgae, the accumulation of MUFAs in Scenedesmus LX1 increases by 125%, which would lead to highly productive microalgal bioreactors.

The termination of auxin production leads to the induction of phosphate accumulation and polymerisation in the GM bacteria. This process will trigger lipid accumulation due to nutrient-induced stress. In the case of Scenedesmus LX1, growth in a phosphate-depleted medium (0.1 mg/L) leads to a lipid accumulation of 53% of its total biomass. Our gm bacteria are expected to accumulate 93% of the available phosphate in mediums with concentrations as high as 124 mg/L, therefore reaching the point of phosphate starvation in most wastewater mediums (de Almeida et al., 2015).

Application of the technology in traditional large-scale production methods.

The use of photobioreactors for biodiesel production in a large scale is still challenging. This is because of their high maintenance, design, and operational costs, as well as the risk of adverse effects such as the proliferation of benthic algae, biofouling, and the accumulation of dissolved oxygen. For this reason, microalgae-producing companies generally couple the use of photobioreactors with open raceway ponds (ORP), whose structure is simpler and requires less capital to operate. ORP systems yield a lower biomass productivity, so the general strategy for optimal lipid production is the creation of hybrid systems. Firstly, the microalgae are cultivated in the photobioreactors to maximize algal growth and biomass productivity. After the maximal growth point has been achieved, the microalgae are placed in ORPs to be subjected to several stresses for lipid accumulation.

The BloomAid cultivation method can be adapted to this methodology, as it can enhance both steps in the hybrid cultivation method. Firstly, the microalgae will be grown inside a monochrome photobioreactor together with the GM bacteria. Subsequently, when the maximum microalgal density is reached, the microalgae will be released into ORPs where the natural light will activate the second phase of the cultivation process. It is important to note that the ORPs containing BloomAid should be sealed to ensure that they qualify for level 1 containment level.

The BloomAid cultivation method ensures the reduction of biodiesel production costs through several approaches. The first of these is the overall increase in FAMEs energetic productivity, as the system ensures higher lipid accumulation without a significant increase in energetic consumption. The 200.53% increase in lipid production through the use of BloomAid is expected to reduce the cost of production by 15% (Chen, 2017) in small-scale facilities. This also significantly reduces the need for large properties to scale-up the production of biodiesel feedstock, significantly reducing the initial investment costs. The technology also allows for the use of ORP during the second step of the cultivation process, which compared other high-yield approaches that are dependent on photobioreactors, reduces the cost of production from $2–$15/kg to $32/kg (Kothari et al., 2017). The use of wastewater to grow the microalgae further reduces the biodiesel production costs, leaving it at $0.73kg−1 Rafa et al., 2021). Overall, it is conclusive that BloomAid has the potential to significantly lower the costs of production of biodiesel, and therefore stimulate the third generation biofuels market.

Our personnel plan is highly dependent on the stage of our company's growth and key objectives. The first stage of our implementation plan seeks to get the approval of the HSE for Deliberate Release Trials and subsequent marketing approval, ensuring that the BloomAid prototype covers all safety concerns and proves itself as an appropriate tool to increase biodiesel affordability, reduce the presence of phosphate in wastewater, and increase microalgal bloom. The second stage of our project is concerned with the entry of our product into the market. This part involves active strategies to maximize market capture and provide evidence of our technical superiority with respect to other cultivation methods, as well as engage in competition with other companies operating in similar niches in the biofuel, wastewater treatment, and microalgal cultivation market. For this reason, the personnel plan section of our business plan will discuss separately each one of these phases, incurring in the personnel necessary for each one of them.

Phase one: legal commercialisation approval.

During this stage, the goals of our team will be to create a viable prototype to be tested and provide enough evidence to the HSE to ensure its approval for commercialisation in the market. The main investment in personnel will therefore focus on R&D, which will be inexpensive due to a predicted modest funding acquired at this stage. Therefore our personnel will be composed mainly of scientists (responsible for the development of the GMM prototype), dry lab modelers (responsible for the assessment of the competence and safety of the project), and administrative personnel (dedicated to the communication with the HSE and funding, as well as the design of a precise market entry strategy). Our experience developing the technology has proven to us that this task can be accomplished by the current members of the team (9 employees). However, to meet deadlines, we predict an increase of between 50% and 100% in our personnel.

The first phase of our project can be divided into two parts. The first part involves the project prior to the Deliberate Release Trials, making this phase an R&D-intensive period to ensure the correct completion of a compelling candidate for the HSE (Figure 1 provides a visualization of the team composition during this period). The second part involves the project after the satisfactory completion of the deliberate release trial, in which the administrative and business development quadrants intensify due to an increased load of paperwork right before the approval of the project, a rise in costs associated with the marketing licenses, an increase in the influx of investment due to the completion of a significant milestone, and the preparations leading to phase 2 (Figure 2 provides a visualization of the team composition during this period).