U.S. government spending saves the world (again)

From the government agency that brought you nuclear power, space travel, computers, and the internet:

The brain trust of the Pentagon says it is just months away from producing a jet fuel from algae for the same cost as its fossil-fuel equivalent.

The claim, which comes from the Defense Advanced Research Projects Agency (Darpa) that helped to develop the internet and satellite navigation systems, has taken industry insiders by surprise. A cheap, low-carbon fuel would not only help the US military, the nation's single largest consumer of energy, to wean itself off its oil addiction, but would also hold the promise of low-carbon driving and flying for all.

Darpa's research projects have already extracted oil from algal ponds at a cost of $2 per gallon. It is now on track to begin large-scale refining of that oil into jet fuel, at a cost of less than $3 a gallon, according to Barbara McQuiston, special assistant for energy at Darpa. That could turn a promising technology into a ­market-ready one. Researchers have cracked the problem of turning pond scum and seaweed into fuel, but finding a cost-effective method of mass production could be a game-changer. "Everyone is well aware that a lot of things were started in the military," McQuiston said...

McQuiston said a larger-scale refining operation, producing 50 million gallons a year, would come on line in 2011, and she was hopeful the costs would drop still further – ensuring that the algae-based fuel would be competitive with fossil fuels.

Important point: It doesn't matter so much if it's competitive with fossil fuels today, because it surely will be in a few years, because oil is falling short of world demand.

Unlike corn-based ethanol, algal farms do not threaten food supplies. Some strains are being grown on household waste and in brackish water. Algae draw carbon dioxide from the atmosphere when growing; when the derived fuel is burned, the same CO₂ is released, making the fuel theoretically zero-carbon, although processing and transporting the fuel requires some energy.

The industry received a further boost earlier this month, when the Environmental Protection Agency declared that algae-based diesel reduced greenhouse gas emissions by more than 50% compared with conventional diesel.

This technology is really the savior of civilization. With algae-based biofuel, we won't need to go back to local farming and horse-drawn carriages. We won't be so desperate for a magical breakthrough in fusion power (though that would still be awesome) or expensive solar installations*. In short, we will be able to maintain - and improve - our current lifestyle, without messing up the climate.

Also note that this technology might provide an (expensive) way to actually fix the climate in the long run. Suppose a gallon of algae-based biofuel - which gets its carbon by sucking CO2 right out of the air - costs $2, and has the same amount of carbon as a gallon of gasoline. Suppose you need to burn 0.5 gallons of algae fuel to produce 1 gallon (for an EROI of 2). So for $3 - the cost of the half gallon you burn, plus the opportunity cost of not burning an additional gallon of algae - you can suck 1 gallon's worth of CO2 out of the air permanently. If governments commit to doing this, we can build up a strategic fuel reserve and save the planet at the same time.

But anyway, back to the point. This breakthrough should send a message loud and clear to all those conservative types who say that government spending is always wasteful and inefficient: YOU ARE WRONG. Science is a hugely important public good - something that the private sector, left to its own devices, will provide some of, but not enough of. It is no coincidence that so many of the biggest scientific and technological breakthroughs of the past 100 years were direct results of government spending.

And note that once our debt passes the point of no return, thanks to conservatives' refusal to raise taxes or control health care costs, we will be far less able to fund big game-changing projects like this one.

* Note that solar is still a great technology. And consider this, from the same article.

McQuiston said the agency was also looking at how to make dramatic improvements in the photo-voltaic cells that collect solar energy. She said making PV 50% more efficient would create a future when even the smallest devices, such as mobile phones, would be ­powered by their own solar cells.