By Art Mass

Fort Collins-based Solix Biofuels Inc. announced that it completed construction and start of algal oil production at its Coyote Gulch Demonstration Facility. Algal oil production began on July 16, following the inoculation of the facility with microalgae. and Solix says it expects the facility to be in full-scale commercial operation by late summer.

The company, a spin-off from Colorado State University, uses algae to produce liquid fuel for use in airplanes and diesel trucks.

The Coyote Gulch Demonstration Facility is expected to be producing the equivalent of 3,000 gallons per acre, per year of algal oil by late 2009. During the peak growth season, microalgae can be harvested every 5-7 days. The total facility is located on a two-acre site in the southwestern region of the state, on land provided by Solix’s partner, the Southern Ute Indian Tribe, and is fully integrated with an industrial plant producing CO2 and water as waste products.

Solix has plans to expand to more acres of production at the Coyote Gulch location in the near future. In addition, as the site expands, the Coyote Gulch Demonstration Facility will provide new jobs to the Durango area.

Rich Schoonover, Solix’s chief operating officer, oversaw the inoculation process said: “Today’s inoculation was an exciting moment for Solix, the state of Colorado and our country. We are ready to prove to the world the viability of algae as an alternative to petroleum-based fuels.”

“The inoculation of the Coyote Gulch Demonstration Facility marks a major milestone for the algal fuel industry,” said Doug Henston, chief executive officer of Solix. “We are proud to contribute to this new era of algal fuel production, making Solix an alternative energy industry leader,” he added.