algae are being studied to uncover their photosynthetic qualities in order to identify 

 high yield species. We are also studying the large scale cultivation of selected algae 

 species under controlled conditions for energy farms composed of converted natural 

 ponds and man-made lagoons, where very high productivity rates can provide raw 

 material for direct conversion to energy products. We are also working on harvest 

 and collection projects for water hyacinth plants as a natural source of aquatic 

 biomass for gas and alcohol production. 



To give value to this work, it is not sufficient to produce the biomass, but it has to 

 be converted to useful energy forms. Therefore, parallel to the efforts involved in 

 the production effort are investigations in conversion. The technologies applied to 

 terrestrial biomass can generally be applied to the aquatic biomass, modified to fit 

 the aquatic nature of the material. Indeed, the bulk of the funds in the overall 

 biomass energy program are directed to development of these conversion technol- 

 ogies. 



One can divide conversion technologies broadly into thermochemical approaches, 

 which rely on high temperatures and pressures to convert the biomass to fuel 

 products, and biochemical approaches, which utilize bacterial action. Because of the 

 nature of aquatic biomass, and particularly its highwater content, the biochemical 

 conversion technologies of fermentation and anaerobic digestion are most suitable. 



As Dr. Flowers has discussed. General Electric and the Institute of Gas Technol- 

 ogy are giving specific attention to the problem of anaerobically digesting giant kelp 

 to produce methane. We also have a project at the University of California on the 

 large scale bio-conversion of algae which has importance for pollution control of 

 urban wastes. 



The aquatic biomass program is administered by the Biomass Energy Systems 

 Branch of the Division of Distributed Solar Technology within the Department of 

 Energy. A breakdown of the fiscal year 1979 biomass budget is shown in Figure 1. 

 The budget for production and conversion of aquatic biomass has been growing 

 rapidly as seen in Figure 2. We expect this trend to continue. In fiscal year 1980, 

 about six million dollars, or more than 10% of the entire biomass program budget, 

 is budgeted for aquatic biomass. For your information. Figure 3 contains a list of 

 aquatic biomass contracts whch have been funded in the program. 



I would like to conclude my remarks with a few comments regarding the issues 

 associated with the use of aquatic biomass for energy. Obviously, we regard aquatic 

 biomass as having high potential for making a significant contribution ultimately to 

 the energy supply of our Nation. The vast areas of the ocean, as well as suitable 

 marginal lands as in the U.S. Southwest, could lend themselves to very large-scale 

 aquatic biomass farming. This, coupled with the very high yields which seem to be 

 possible from algae, could lead to highly productive enterprises. 



The key issue we are now facing is lack of information. We clearly know vastly 

 more about growing and harvesting corn than about growing and harvesting algae. 

 That is why I see the main product of this program over the next several years as 

 being information. We must learn about the variety of plant species available, about 

 their sensitivity to changes in growing conditions, and about the most efficient and 

 economical ways to harvest and convert the biomass. 



We have, for example, performed a number of studies on the economics of meth- 

 ane production from giant kelp farms. There are two basic findings — that the 

 projected gas costs tend to be high compared to other sources of gas, and that the 

 projections span a wide range depending on the assumptions made. We are not 

 discouraged by these results because they are measures primarily of the extent to 

 which we need information. 



We are encouraged with what we have been learning about aquatic biomass. We 

 remain optimistic about an ultimate ability to capture the benefits of open-ocean 

 mariculture. We are also very excited about the potential for wide-spread aquacul- 

 ture on marginal lands. Finally, we welcome your continued interest in the Admin- 

 istration's Biomass Program. 



Thank you. 



