SunEco Energy and J.B. Hunt Algae Power Hits the Road

Press Release

SunEco Energy and J.B. Hunt Algae Power Hits the Road

Biodiesel, powered with SunEco algae oil reduced emissions 82% with no loss of power

CHINO, Calif., July 29 /PRNewswire/ -- J.B. Hunt Transport Services, Inc. (Nasdaq: JBHT) and SunEco Energy today announced the signing of a cooperative agreement, which could lead to J.B. Hunt becoming a significant purchaser of biodiesel made from natural algae oil using SunEco Energy's proprietary technology.

The two companies conducted a series of successful tests using biodiesel made by SunEco Energy from 100 percent natural algae oil produced at the company's pilot plant in Chino, California. These tests, using a 20 percent and 50 percent blend of algae oil with petroleum diesel, measured an 82 percent reduction in particulate emissions with no loss of power.

"Transportation fuel is virtually 100% oil-based," said Gary Whicker, senior vice president of engineering for J.B. Hunt. "Finding alternative energy sources to put in our fuel tanks is good business for our company and our nation. SunEco's innovative process to produce renewable fuel supplies from algae grown in American ponds is an intriguing new option. Our initial experience with their algae-based biodiesel is promising, and we are excited about the opportunity to work with SunEco Energy to move towards a lower cost, less carbon intensive, and more secure energy supply for our business."

"We are very pleased that J.B. Hunt, a leading transportation company, took the steps to test our fuel in their trucks and are taking further steps to become a leader in the use of renewable fuels," said Dan Gautschi, Chairman and CEO of SunEco Energy. "The SunEco technology has been in development for over five years, with an operating pilot facility over the past two years which has allowed us to continually produce barrels of oil rather than beakers, enabling us to provide oil for tests in a variety of applications."

SunEco's proprietary technology utilizes naturally occurring algae strains in a monitored environment to produce an oil product suitable for making renewable transportation fuels and other oil-based products, and, as a byproduct of the process, a high-quality animal feed supplement. SunEco is currently raising additional funding to enable the large scale deployment of the technology in U.S. and international markets, including a large development in the Imperial Valley region of California.

J.B. Hunt Transport Services, Inc. focuses on providing safe and reliable transportation services to a diverse group of customers throughout the continental United States, Canada and Mexico. Utilizing an integrated, multimodal approach, J.B. Hunt provides capacity-oriented solutions centered on delivering customer value and industry-leading service.SunEco Energy is committed to leading the deployment of commercially viable bio-products made from natural algae strains. The Company's primary objective is to deliver reliable clean and sustainable energy products for transportation fuels and livestock feed, thus breaking the trade-off between food or fuel. Looking forward, the company intends to expand its product range to include a full scope of uses currently obtained from petroleum, such as, plastics, inks and dyes, as well as nutri-ceuticals.

U.S. Sugar Wants to Turn Sugar Into Fuel

U.S. Sugar Corporation (Clewiston FL) hopes the waste generated from sugar production can be turned into fuel. The company is currently exploring the feasibility of building the world's largest second-generation ethanol facility which would convert sugar cane leaves and sugar-processing waste into ethanol. It is also hopeful that the facility will be able to process waste from other farming operations.

The announcement comes at a time when the Everglades Coalition, an alliance of environmental organizations dedicated to preserving the Everglades, has filed lawsuits to stop agricultural runoff polution created by sugar cane processing facilities.

The Tangled Web of Biofuels, Greenhouse Gas Emissions, and Food Prices

Despite goverment insistence that biofuels are not to blame for increased food prices and Sen. Grassley's claim that "the recent criticism of ethanol by foreign officials (is) “a big joke,” the evidence continues to mount against first-generation biofuels.

Research has already shown that Brazilian soy biodiesel, European rye ethanol, European rapeseed biodiesel, and US corn ethanol all have a worse life cycle impact on the environment than petrol. Now two reports have been released that connect biofuels to increased food prices.

Oxfam has released a report, Another Inconvenient Truth, stating that biofuels are responsible for 30 percent of the increase in world food prices. The report goes on to state that biofuels' contribution to increased world food prices have pushed 30 million people into poverty. According to the report,

Biofuels are presented in rich countries as a solution to two crises: the climate crisis and the oil crisis. But they may not be a solution to either, and instead are contributing to a third: the current food crisis....(T)he most serious costs of these policies – deepening poverty and hunger, environmental degradation, and accelerating climate change – are being ‘dumped’ on developing countries.

In a related report from the World Bank, Biofuels: The Promise and the Risks, they state that liquid biofuels from agriculture have pushed up feedstock prices, increased competition for land and water, and resulted in a 60% increase in the price of maize from 2005 to 2007. The report goes on to suggest that first-generation biofuels have not lived up to their promise of reduced greenhouse gas emissions and reduced reliance on oil, but second-generation biofuels (from waste) hold more potential.

Both reports urge governments to proceed with caution on biofuel mandates and strategies. Sen. Kay Bailey Hutchison has introduced legislation that would freeze U.S. biofuel mandates at current levels. In the meantime, the British government has decided to slow the expansion of biofuels.

Virgin's Bio-Fueled Flight

Virgin Atlantic Airlines completed the world's first biofuel-powered jet flight today. The test flight was fueled by 20% biofuel (from babassu oil and coconut oil) and 80% conventional jet fuel. It will take weeks to analyze the data and determine the carbon footprint of the test flight. The flight was intended to highlight the fact that "cleaner" flying is possible. You can read the full story at CNN and Reuters.

Owner Richard Branson has offered a $25 million prize to the scientist that can discover how to remove greenhouse gases from the atmosphere, has committed $3 billion to anti-global warming initiatives, and has pledged 100% of the proceeds from his transport businesses of the Virgin Group to environmental efforts.

Research: How Green Are Biofuels?

In an article published in Science, "How Green are Biofuels?," authors Jörn Scharlemann and William Laurance have returned attention to a study from last summer by Rainer Zah. Zah and his colleagues' conducted a life cycle assessment for the environmental impact of bioethanol, biomethanol, biodiesel and biomethane. Zah et al. state, "While the use of a number of biofuels can reduce greenhouse gases by more than 30 percent, the cultivation, processing and conversion of the raw materials into usable fuels cause quite an impact upon the environment." The results of their life cycle analysis show that Brazilian soy biodiesel, European rye ethanol, European rapeseed biodiesel, and US corn ethanol all have a worse life cycle impact on the environment than petrol (read the Zah et al. summary or full study).