Second Generation Biofuels: High-Efficiency Microalgae
for Biodiesel Production
Peer M. Schenk & Skye R. Thomas-Hall &
Evan Stephens & Ute C. Marx & Jan H. Mussgnug &
Clemens Posten & Olaf Kruse & Ben Hankamer
Published online: 4 March 2008
# Springer Science + Business Media, LLC 2008
Abstract The use of fossil fuels is now widely accepted as
unsustainable due to depleting resources and the accumulation
of greenhouse gases in the environment that have already
exceeded the “dangerously high” threshold of 450 ppm CO2-e.
To achieve environmental and economic sustainability, fuel
production processes are required that are not only renewable,
but also capable of sequestering atmospheric CO2. Currently,
nearly all renewable energy sources (e.g. hydroelectric, solar,
wind, tidal, geothermal) target the electricity market, while
fuels make up a much larger share of the global energy
demand (∼66%). Biofuels are therefore rapidly being devel-
oped. Second generation microalgal systems have the
advantage that they can produce a wide range of feedstocks
for the production of biodiesel, bioethanol, biomethane and
biohydrogen. Biodiesel is currently produced from oil
synthesized by conventional fuel crops that harvest the sun’s
energy and store it as chemical energy. This presents a route
for renewable and carbon-neutral fuel production. However,
current supplies from oil crops and animal fats account for
only approximately 0.3% of the current demand for transport
fuels. Increasing biofuel production on arable land could have
severe consequences for global food supply. In contrast,
producing biodiesel from algae is widely regarded as one of
the most efficient ways of generating biofuels and also
appears to represent the only current renewable source of oil
that could meet the global demand for transport fuels. The
main advantages of second generation microalgal systems are
that they: (1) Have a higher photon conversion efficiency (as
evidenced by increased biomass yields per hectare): (2) Can
be harvested batch-wise nearly all-year-round, providing a
reliable and continuous supply of oil: (3) Can utilize salt and
waste water streams, thereby greatly reducing freshwater use:
(4) Can couple CO2-neutral fuel production with CO2
sequestration: (5) Produce non-toxic and highly biodegradable
biofuels. Current limitations exist mainly in the harvesting
process and in the supply of CO2 for high efficiency
production. This review provides a brief overview of second
generation biodiesel production systems using microalgae.
Keywords Algae . Carbon sequestration . Biofuel . Biogas .
Biohydrogen . Biomethane . Bioreactor . Lipid . Oil .
Raceway pond . Triacylglycerides . Review
Abbreviations
BTL biomass to liquid
CFPP cold filter plugging point
CO2-e-CO2 equivalents of greenhouse gases
NEB net energy balance
LHC light harvesting complex
OAE oceanic anoxic event
PS photosystem
Bioenerg. Res. (2008) 1:20–43
DOI 10.1007/s12155-008-9008-8
P. M. Schenk (*) : S. R. Thomas-Hall : E. Stephens
School of Integrative Biology, University of Queensland,
St. Lucia, Queensland 4072, Australia
e-mail: p.schenk@uq.edu.au
E. Stephens :U. C. Marx :B. Hankamer
Institute for Molecular Bioscience, University of Queensland,
St. Lucia, Queensland 4072, Australia
J. H. Mussgnug :O. Kruse
Department of Biology, AlgaeBioTech Group,
University of Bielefeld,
Bielefeld, Germany
C. Posten
Institute of Life Science Engineering, Bioprocess Engineering,
University of Karlsruhe,
Karlsruhe, Germany
RuBP ribulose-1,5-bisphosphate
Rubisco ribulose 1,5 bisphosphate carboxylase/
oxygenase
TAG triacylglycerides
Significance of Biodiesel Production from Algae
Introduction
The development of CO2-neutral fuels is one of the most
urgent challenges facing our society. In the last 18 months,
this fact has been brought into sharp focus by the Stern
Report ‘The Economics of Climate Change’ [170] and the
Intergovernmental Panel on Climate Change ‘AR4 Synthe-
sis report’ [84]. Together these reports provide the most
comprehensive evaluation of the causes and effects of
climate change currently available. Importantly they define
atmospheric CO2 levels above 450 ppm CO2-e (i.e. e =
equivalent contribution of all greenhouse gases) as already
being in the dangerously high range and conclude that we
exceeded this threshold (currently 455 ppm CO2-e) 10 years
earlier than had previously been predicted.
These new and startling conclusions are leading govern-
ments to establish CO2 emission reduction targets which
typically lie in the range of 10–20% by 2020 (e.g. European
Union). Germany recently suggested a 30% cut by 2020 if
matched by other nations. Yet these proposed emission
reductions are not sufficient to stabilize CO2 levels in an
accepted ‘safe zone’ (i.e. below 450 ppm CO2-e; IPCC
[84]). Indeed they are more likely to lead to stabilization
levels above 550 ppm. At these levels much more
destructive effects are predicted [84]. So, although a range
of CO2 reduction scenarios to stabilize emissions have been
developed, the IPCC concluded that to stabilize in a range
of 445–490 ppm of atmospheric CO2-e, emissions must
peak before 2015 and a total CO2 reduction of 50–85% will
be required by 2050. Importantly, the IPCC indicates that
this might be an underestimate due to missing carbon cycle
feedback effects in the current climate change models.
Consequently more stringent emission reductions (e.g. 60%
by 2020) are increasingly thought to be more appropriate
and such concern has led Rajendra Pachauri, the chairman
of the IPCC to state, “What we do in the next 2 or 3 years
will define our future” [126].
Achieving a 60% CO2 emission reduction by 2020 or
even a 50–85% cut by 2050 is, however, an enormous
global challenge which will require the development of a
suite of renewable energies. There is now a concerted effort
to develop new biofuels, of which biodiesel and bioethanol
are seen as being close to market options. The areas of
biomethane, biomass-to-liquid (BTL)-diesel and biohydro-
gen are also developing rapidly.
This review provides a brief overview of the background
and recent developments in second generation microalgal
systems with a specific focus on biodiesel, which have the
potential to couple renewable, CO2-neutral fuel production
with power plant flue and atmospheric CO2 sequestration.
Specifically, it aims to define the current state of the art, and
to identify major opportunities for future innovation in the
biodiesel field.
Biofuels and Biodiesel in the Global Context
The global energy market can essentially be divided into
the electricity and fuel sectors. Both sectors will have to
achieve significant emission reductions to meet planned
international legislated targets. Currently, the electricity
sector accounts for approximately 33% of global energy
and is developing a range of low CO2-emission approaches
for electricity production (i.e. nuclear, solar, wind, geother-
mal, hydroelectric, clean-coal technology). In contrast, fuels
accounted for a much larger (∼67%) market share of the
global energy consumption ∼15.5 TW (489 EJ/year) in
2005 according to the Energy Information Administration,
USA. Yet, despite the obvious importance of fuels, CO2-
neutral (e.g. biodiesel, bioethanol, biomethane, BTL-diesel)
and CO2-free (e.g. biohydrogen) fuel production systems
are far less developed. The range of biofuels available
demonstrates the flexibility and potential of the biofuel
industry. However, this potential was not fully realized by the
first generation biofuel systems due to serious economic and
environmental limitations (see “Addressing the Concerns of
Biofuel Production” and “Economic Feasibility of Microalgal
Biodiesel” sections). In contrast, second generation biofuel
systems (such as lignocellulosic and microalgal biofuel
systems) have the potential to overcome many of these
limitations and target a newly emerging clean energy market
which is predicted to expand rapidly to a value of US $500bn
by 2050 [170], or more (current oil market value is US $2.65
Trillion).
By far the largest proportion of biofuels is produced
from higher plants which use photosynthesis to convert
solar energy into chemical energy (Fig. 1). In nature, this
chemical energy is stored in a diverse range of molecules
(e.g. lignin, cellulose, starch, oils). Lignocellulose, the
principle component of plant biomatter, can be processed
into feedstock for ethanol production. This can be achieved
by either gasification or by cellulolysis (chemical or
biological enzymatic hydrolysis). These processes are
currently being developed for second generation biofuel
systems [41, 155] and are often referred to as ‘lignocellu-
losic processes’. Similarly, starch (e.g. from corn) and sugar
Bioenerg. Res. (2008) 1:20–43 21
(e.g. from sugarcane) are already being converted into
bioethanol by fermentation [23, 74], while oils (e.g. from
canola, soy and oil palm) are being used as a feedstock for
the production of biodiesel [80, 156]. Microalgae are able
to efficiently produce cellulose, starch and oils in large
amounts [16, 162]. In addition, some microalgae and
cyanobacteria (which produce glycogen instead of starch)
can also produce biohydrogen under anaerobic conditions
[20, 35, 59, 76, 111] and their fermentation can also be
used to produce methane (Fig. 1; “Other Biofuels from
Microalgae” section).
The Flexibility of Biofuel Production Systems
Central to all light-driven biofuel production is the process
of photosynthesis. It is the first step in the conversion of
light to chemical energy and ultimately responsible for
driving the production of the feedstocks required for a wide
range of fuel synthesis (Fig. 1): protons and electrons (for
biohydrogen), sugars and starch (for bioethanol), oils (for
biodiesel) and biomass (for BTL, biomethane).
In higher plants and green algae, light is captured by
specialized light harvesting complex proteins, referred to as
LHCI and LHCII (Fig. 1). These are encoded by a large
gene family that exhibit a high degree of homology [51]
and their expression is dependent on the prevailing
environmental condition (e.g. light intensity). These pro-
teins bind the bulk of the chlorophyll and carotenoids in the
plant and play a role both in light capture and in the
dissipation of excess energy which would otherwise inhibit
the photosynthetic reaction centres, in particular photosys-
tem II (PSII; [81]). Excitation energy used to drive the
photosynthetic reactions is funnelled to the photosynthetic
reaction centres of photosystem I (PSI) and PSII via the
highly coordinated network of pigments bound by the
LHC, PSII and PSI subunits. In the first step PSII uses this
energy to drive the photosynthetic water splitting reaction,
which converts water into protons, electrons and oxygen.
The electrons are passed along the photosynthetic electron
transport chain via plastoquinone (PQ), cytochrome b6 f
(Cyt b6 f), photosystem I (PSI), and ferredoxin (Fd) and on
to NADPH (Fig. 1). Simultaneously, protons are released
into the thylakoid lumen by PSII and the PQ/PQH2 cycle.
This generates a proton gradient, which drives ATP
production via ATP synthase. The protons and electrons are
recombined by ferredoxin-NADP+ oxidoreductase (FNR) to
produce NADPH. NADPH and ATP are used in the Calvin
cycle and other biochemical pathways to produce the sugars,
starch, oils and other bio-molecules (which collectively form
biomass) that are required to produce bioethanol, biodiesel,
biomethane and BTL-based biofuels. Alternatively in some
photosynthetic microorganisms like the green alga Chlamy-
domonas reinhardtii, the protons and electrons extracted
from water (or starch) can be fed to the hydrogenase enzyme
(HydA) via the electron transport chain to drive the direct
photo-production of biohydrogen (Fig. 1). The production of
Fig. 1 The process of photo-
synthesis coverts solar energy
into chemical energy and is key
to all biofuel production systems
in plants
22 Bioenerg. Res. (2008) 1:20–43
biohydrogen by the algae and biomethane from biomass as a
downstream product are briefly discussed in the section on
“Other Biofuels from Microalgae”.
The Calvin cycle is an integral part of the photosynthetic
process and responsible for fixing CO2, in a diverse range
of organisms including primitive algae through to higher
plants. The process uses ATP and NAD(P)H generated by
the light reactions. In C4 and CAM plants it is coupled to
ancillary processes that aid CO2 fixation, but the funda-
mental photosynthetic reduction cycle reactions remain the
same [175]. The Calvin cycle can be divided into three
main steps that involve carboxylation, reduction and
substrate (ribulose-1,5-bisphosphate (RuBP)) regeneration.
The first step at which CO2 enters the cycle to react with
RuBP is catalyzed by ribulose-1,5-bisphosphate carboxyl-
ase/oxygenase (rubisco). The importance of rubisco is hard
to overstate as essentially all carbon found in living
organisms on Earth was once fixed by this enzyme from
atmospheric CO2. Furthermore it is the most abundant
protein on Earth, constituting some 30% of total proteins in
most leaves [129]. This is partly because of its central role
for photosynthesis, but also because it has a very low
catalytic carboxylase performance, using as little as 2–
3 RuBP per second [104]. As its name suggests rubisco has
two catalytic functions; it functions as a carboxylase as part
of the photosynthetic reduction cycle, and under aerobic
conditions as an oxygenase as part of photorespiration. O2
and CO2 compete for the same catalytic site, so that the
efficiency of CO2 fixation can be impaired in certain
aerobic environments. For example, although the specificity
of the enzyme is higher for CO2 (e.g. tobacco (higher plant)
82 times, Griffithsia monilis (red alga) 167 times,
Rhodospirillum rubrum (purple non-sulfur bacteria) 12
times [7]), the molecular ratio of O2/CO2 is about 540:1
in air and 24:1 in air-saturated water at 25°C. In the first
step of the Calvin cycle, rubisco catalyzes the formation of
two 3-phosphoglycerate molecules from RuBP, CO2 and
H2O. The forward reaction is strongly favoured by the
negative change in free energy of the process. In the second
step, an ATP/NADPH-dependent reduction phase, these
carboxylic acids are reduced to form two molecules of
glyceraldehyde-3-phosphate, by the action of phosphoglyc-
erate kinase and glyceraldehyde-3-phosphate dehydroge-
nase. In a third step, consisting of a series of reactions a
proportion of glyceraldehyde-3-phosphate is converted
back to RuBP required to allow the photosynthetic
reduction cycle to continue [175].
Addressing the Concerns of Biofuel Production
Although biofuel processes have a great potential to
provide a carbon-neutral route to fuel production, first
generation production systems have considerable economic
and environmental limitations and recently, the issue of
biofuels has become a hot debate. While benefits of
biofuels are emphasized by some [157, 167], others have
criticized the economics and carbon mitigation potential of
biofuel production ([19, 128, 131, 147, 190]).
The most common concern related to the current first
generation of biofuel systems is that as production
capacities increase, so does their competition with agricul-
ture for arable land used for food production. For example,
current biodiesel supplies from oil-producing crops, supple-
mented with small amounts of animal fat and waste cooking
oil, only account for an estimated 0.3% (approx. 12 million
tons in 2007) of the current global oil consumption [24, 125]
and can not even come close to satisfying the existing and
future demand for transport fuels. Currently approximately
8% of plant-based oil production is used as biodiesel [125]
and this has already contributed to an increase of the price
of oil crops over the last few years.
Area Requirements for Biofuel Production It is estimated
that the surface of the Earth (510,072,000 km2) receives
∼170 W m−2 of solar power on average [31, 196]. This
equates to 2.735 YJ of energy per year and corresponds to
∼5,600 times the global consumption of primary energy in
2005 (488 EJ; [196]). Consequently the solar energy
required to produce biofuels is available in abundance.
However, even if current oil-producing crops would be
grown on all arable land (assuming 29.2% of the Earth is
land of which 13% are arable, energy conversion efficien-
cies of 1% from sunlight to biomass, and 20% yield as oil),
these would be able to cover less than half of our energy
demand today. Using such conservative figures, biofuel
critics have often concluded that biofuel production can not
contribute in any major way to global fuel requirements.
However as will be highlighted here, much higher
photosynthetic efficiencies and oil yields are already
achievable and so open up second generation biofuel
technologies with enormous potential.
The increased pressure on arable land has already
resulted in considerable problems and unsustainable
practises worldwide that have led to the coining of the
phrase “peak soil”. For example, rainforest regions in
Brazil and South East Asia are currently being cleared at
an unprecedented rate to make room for soybean and oil
palm plantations for the production of biodiesel. Annual
biodiesel production growth rates in Indonesia, Malaysia
and Thailand are currently between 70% and 250%
[181]. The increased pressure on arable land currently
used for food production could lead to severe food
shortages, in particular for the developing world where
already more than 800 million people suffer from hunger
and malnutrition (figure without China; [53]). In addition,
the intensive use of land with high fertilizer and pesticide
Bioenerg. Res. (2008) 1:20–43 23
applications and water use can cause significant environ-
mental problems.
Net Energy Balance When evaluating the value and
sustainability of a biofuel production process it is necessary
to establish its Net Energy Balance (NEB). The NEB of
first generation biofuels taking into consideration the
energy required for farming, harvesting, processing, trans-
port, etc. has recently been estimated to be ∼25% for corn
ethanol and + ∼93% for soybean biodiesel [80], though
precise values are dependent on detailed case by case life
cycle analyses. While this report counters claims that
energetic costs of fertilizer applications, farming machinery
and processing facilities cause negative NEB values for
both biofuels, it does not as yet factor in projections by the
Intergovernmental Panel on Climate Change that traditional
crop yields could fall up to 50% by 2020 [84].
Carbon Balance Calculating the carbon balance of a process
is equally important. Biofuel production from crops is often
estimated to be a near carbon-neutral process as nearly all
carbon in conventional biofuel crops is derived from atmo-
spheric CO2, which is released on combustion. However to be
precise the overall CO2 emissions balance for biofuel
production, must also be evaluated on an individual produc-
tion case basis and include energy-intensive fertilizer produc-
tion, the use of machinery for cultivation and refinery, and
transport which are processes that currently emit fossil fuel-
derived CO2. Furthermore, the production of oil from oil palm
plantations established prior to the legislation of Kyoto
emissions targets, is considered to lead to improved reductions
of emissions compared to conventional diesel. In contrast
however, if rainforest regions must first be cleared to make
room for the plantation, the CO2 emissions balance is
exceedingly poor [14].
CO2 Sequestration One important development which is
predicted not only to greatly improve the net CO2 balance
of biofuel processes, but actually contribute to atmospheric
CO2 reductions, is the coupling of biofuel production to
CO2 sequestration systems. These typically involve the
production of Agri-char