Algae fuel to diversify Pilbara

The California-based chief executive of what may soon be the world's biggest algal biofuel operation yesterday described Karratha as the "Saudi Arabia of algal fuels" as he unveiled a solar-powered demonstration project in the Pilbara.

Aurora Algae chief executive Greg Bafalis said the company had searched the globe to find the best site for the project and stumbled across Karratha after a chance meeting with AusTrade.

"We started with meteorological data … we came in (to Karratha) and thought it was perfect - it had everything we needed," he said.

"It was the highest solar radiation on the planet, a great CO2 source from the natural gas business that's here and great land for us to expand on."

The 8ha demonstration site, built with up to $2 million in Federal Government grants, has six half-hectare production ponds already producing more than 15 tonnes of algal biomass a month.

The company has secured an option agreement over a 607ha site 20km from the demonstration facility where it plans to build a full-scale commercial facility.

The method involves seawater, which is piped into ponds where a tiny type of algae is grown. Ammonia and nitrogen are added and the ponds are pumped full of carbon, which the algae absorbs and draws energy from to grow.

Once the algae grows sufficiently thick, the water is extracted and the algae harvested and dried. The oil is separated from the biomass, which is rich in protein and carbohydrates and has a multitude of uses, including food for humans and animals.

Part of the oil is rich in Omega 3, normally found in fish oil, while the rest can be used as carbon neutral biofuel. To prove it worked, dignitaries were taken for a spin in a car powered by the company's A2 Fuel at the launch.

Mr Bafalis said algae biofuel could be used to sequester carbon emissions.

WA Chief scientist Lyn Beazley said the "really exciting" project had the potential to diversify the Pilbara economy.

"It will offer opportunities for our young people to seek careers in science, technology, engineering and innovation - this is the best place in the world for this sort of technology to develop," Professor Beazley said.

Minister for Regional Development Brendon Grylls said it wasn't improbable that people might soon see hectares of green ponds as well as salt ponds when flying into Karratha

"Here's hoping that that diversity of the economy actually occurs," he said.