A Value Chain and Life-Cycle Assessment Approach to Identify Technological Innovation Opportunities in Algae Biodiesel

Algae biodiesel is an opportunity space that has gained renewed interest for venture investment. As with any new opportunity space, determining where the greatest value capturing potential resides has important implications for directing investment and research. This paper presents a value chain analysis of algae biodiesel and maps current industry players against similar segments in the biofuels and petroleum value chains. Using margin analysis and life-cycle analysis of one of the market pains (energy use in algae harvesting and biomass processing to biodiesel), a technology opportunity was identified. The identification of potentially high value companies using semi-quantitative analysis provides a useful tool for investors and entrepreneurs in the algae biodiesel space.