8 Comments

Summary:

Bill Gates joins Martin Tobias as a fan of the algae-to-fuel startup Sapphire Energy. The San Diego, Calif.-based startup is working on squeezing green crude from algae for high octane fuels and today says that it has more than doubled its funding to over $100 million. […]

Bill Gates joins Martin Tobias as a fan of the algae-to-fuel startup Sapphire Energy. The San Diego, Calif.-based startup is working on squeezing green crude from algae for high octane fuels and today says that it has more than doubled its funding to over $100 million.

Gates’ Cascade Investment joined ARCH Venture Partners, Wellcome Trust and Venrock in the investment round. This new funding, for which the specifics were not disclosed, makes Sapphire one of the best-funded startups looking to squeeze fuel from pond scum.

Founded just last year, Sapphire has moved quickly. Earlier this year the company said it produced ASTM-certifiable 91 octane gasoline — the premium stuff at the pump. But Sapphire’s plans for a commercial scale plant are still three to five years away. When the plant is completed, the company hopes to produce what it calls “green crude” for $50 to $80 per barrel on the scale of 10,000 barrels a day.

The idea is that by combining photosynthetic microorganisms, sun, CO2 and water through proprietary processes we can continue to get our greasy oil fix — but from algae. Sapphire says it has a solution that can scale.

Biocrudes have been seeing a lot of investment action recently. South San Francisco-based Solazyme raised $45.4 million in series C for its sunlight-less fermentation process. Emeryville, Calif.-based Amyris Biotechnologies has over $110 million in capital and a partner in Brazilian ethanol distributor Crystalev to develop jet fuel, gasoline and diesel fuel from sugar cane. Meanwhile, LS9, also in South San Francisco, has raised $20 million to use synthetic biology to create “renewable petroleum.”

Previously, Sapphire had raised $50 million from ARCH Venture Partners, the Wellcome Trust and Venrock.

You’re subscribed! If you like, you can update your settings

By Craig Rubens

You're subscribed! If you like, you can update your settings

Related stories

  1. Bill Gates Jumps into Pond Scum — Sustainable Kentucky Wednesday, September 17, 2008

    [...] Bill Gates Jumps into Pond Scum: Sapphire Raises Over $100M « Earth2Tech [...]

  2. Algae Fuel Roundup: Planes, Virginia & Algenol’s Billion-Gallon Plant « Earth2Tech Thursday, September 25, 2008

    [...] algae into valuable, high-grade fuels has attracted millions of dollars of investment, including those of Bill Gates. He’s not alone — everyone from airlines to municipalities to foreign federal [...]

  3. Algae Fuel Roundup: Planes, Virginia & Algenol’s Billion-Gallon Plant [Earth2Tech - Start-Up News] | Internet Startups Thursday, September 25, 2008

    [...] algae into valuable, high-grade fuels has attracted millions of dollars of investment, including those of Bill Gates. He’s not alone — everyone from airlines to municipalities to foreign federal [...]

  4. Biodiesel Processor Sunday, September 28, 2008

    Very cool, I build biodiesel processors which turn waste vegetable oil into biodiesel. It is really amazing how simple the process is, as well as saving the customer $2-3 per gallon at the pumps. Algae biodiesel looks even more promising. Might wanna invest in what Bill likes…he has the money to make it work.

  5. Sapphire Energy: The Gorilla of Algae Fuel? Thursday, April 16, 2009

    [...] all the bravado? The startup is one of the most well funded in the algae fuel industry, with over $100 million raised from the likes of Bill Gates’ investment firm Cascade Investment, as well as ARCH Venture Partners, Wellcome [...]

  6. CHEAT SHEET: Heavy Hitters in Algae Fuel Deals Tuesday, July 14, 2009

    [...] Sapphire has raised venture capital from high-profile investors including Bill Gates’ Cascade Investment, ARCH Venture Partners and Venrock to help it squeeze green crude from algae for high octane fuels. More » [...]

  7. Latest Khosla Fund Investor: Bill Gates! Tuesday, January 26, 2010

    [...] backing. Gates has invested in greentech startups before, and through his fund Cascade Investments invested in algae fuel maker Sapphire Energy, and ethanol makers Pacific Ethanol (however, Cascade later slashed that stake, causing Pacific [...]

  8. Investors Fuel Solazyme With $52M for Algae Monday, August 9, 2010

    [...] well-funded algae fuel company is Sapphire Energy, which has raised more than $100 million from the likes of Bill Gates’ investment firm Cascade Investment, as well as ARCH Venture Partners, Wellcome [...]

Comments have been disabled for this post