A recent surge in investments by venture capitalists in eco-friendly businesses is possibly triggering a boom in green and clean technology. Analysts report on the green market and its ability to make money while saving oil.
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Solazyme achieves that by using fast-growing plants that absorb carbon out of the air to spur the growth of its algae. When the algae oil is burned as fuel, the CO2 emitted is about equal to that taken out of the air, making it almost carbon-neutral.
The company is already running some cars on algae fuel.
The main reason that we know it's going to work is because we've already made fuels that meet existing fuel standards and that run cars.
This is a vial of oil that's very, very similar to light, sweet crude that comes out of the ground. And we've taken those oils and turned them into transportation fuels and powered cars.
Within three years, Solazyme expects to produce fuel on a large scale that will be cheaper than gasoline. They say start-up costs for algae oil are less than they would be drilling for oil.
Solazyme is one of hundreds of expanding young companies, many here in Northern California, hoping to show a profit by developing what is called green or clean technology.
Venture capitalists, despite a time of economic downturn, see large potential profits in green tech, like these investors who were checking out Solazyme.