The cost of energy—a different perspective

When most people think about the cost of energy, the focus is on commodity based pricing—either from a seller’s point of view, or as an end user receiving an electricity or gas bill.  There are a growing number of people focusing on the non-economic impacts of energy production and consumption, but that’s an article for another day! Appropriately, the seller or buyer of the commodity focuses on the cost per energy unit, such as dollars per BTU or dollars per kilowatt hour. Researchers like myself who focus on the creation of fuels from subsurface resources using indigenous microorganisms often take a different perspective on the cost of energy, one that focuses on the number of molecules of an energy yielding compound that we can coax out of microorganisms in a given time. So for a different perspective on energy, I wanted to review the cost of compounds we as a society purchase and/or consume from a “per molecule” perspective. Let’s start with natural gas.  Assuming natural gas is 100% methane and the pricing is $5 per thousand cubic feet (MCF), one would be purchasing 1.44X1026 molecules of methane per dollar[1]. I asked around the lab for examples of extremely inexpensive pure chemicals to compare to methane on a molecule per molecule cost basis. One of the first answers was table salt (NaCl), which on a molecule basis happens to be about 8.5 times more expensive than natural gas [2]. Anybody think Aspirin is inexpensive? On a per molecule basis[3], Aspirin is 8600 times more expensive than natural gas. Of the examples we looked at, the top of the leader board was gold[4], which not surprisingly is about two million times more expensive than natural gas! The fourth example is gasoline. While not a pure compound, we used an average component of gasoline for the calculations. At $3 per gallon, a molecule of gasoline is 26 times more expensive than a molecule of natural gas[5]. The last example is water.  Household pricing for water is around $4.68 per 1000 gallons[6], meaning that household water is actually 190 times less expensive per molecule than natural gas.

So what’s the point? For starters, on a molecule by molecule basis, energy commodities are pretty inexpensive relative to most other things we purchase. The sole exception we presented was water. While I don’t foresee this fact keeping people up at night, for those of us that are farming energy commodities one molecule at a time, one microorganism at a time, the price per molecule is a heavy burden.

Gary Vanzin, Ph.D

Principal Investigator

Luca Technologies Inc.


[1] Assume 1 MCF = 1198 moles of methane, use Avogadro’s number to convert to molecules.

[2] Assuming $0.60 dollars per kilogram of salt, one dollar buys you 1.71 X1025 molecules of salt.

[3] Assuming a $10.00 bottle contains 500 grams of pure acetylsalicylic acid, you’re getting 1.67E1022 molecules per dollar.

[4] At $45 per gram, you only get 6.83E1019 molecules of gold per dollar.

[5] Assuming gasoline weights 105 grams/mol and has a density of 0.75, you buy 5.42 E1024 molecules per dollar

[6] 2.70 X1028 molecules of water per dollar at 55.55 moles/liter and $4.68 per 1000 gallons.

Posted in Natural Gas, Technology, Uncategorized | Leave a comment

Taking the Lab Into the Field

Since 2003, we have been developing our technology to create natural gas in real time by activating microbes that already exist in hydrocarbon deposits below ground. In 2006, we have been in the field testing and improving our technology, refining the techniques that make our process more efficient.

After many years of working in the lab to study the process of methanogenesis (the production of natural gas using microbes) and testing in the field, we believed that it was important to transfer the knowledge we had acquired into scalable field operations to create and produce natural gas. So, beginning this year, we have begun the push of our technology to commercial scale in many wells; and as a symbol of that effort, have coined a new term used among those of us at Luca, called Technology To The Field, or T3F. The logo shown above was developed to communicate this effort and is now being used by our employees appearing everywhere from the hardhats worn by all of our field personnel to employee T-shirts and caps.  It serves as a reminder to all of us about what we are here for: to sustainably and cleanly produce natural gas, the cleanest hydrocarbon fuel.

We believe that Luca represents a transformative and disruptive innovation of natural gas creation and production, integrating what we have learned from biotechnology and natural gas operations. This new symbol of that learning, and the transfer of that learning to field operations, is an important step in the growth of Luca and its importance as a clean energy company.

We will continue talking about our technology as we continue to increase our operations and geographic footprint.

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Of Microbes and Men

In today’s world of E.coli contaminated spinach, flesh eating bacteria, and antibiotic resistant superbugs, the average person is completely unaware of how much we, as humans, depend on bacteria, archaea, and other eukaryotic microorganisms, for our very existence and good health.  Whether it be the ancient endosymbiotic events that led to the incorporation of bacteria inside eukaryotic cells themselves (mitochondria and chloroplasts) or the increasing knowledge that bacteria play a critical role in gastrointestinal health, we are much indebted to microbial life.  For instance, most people are oblivious to the fact that if you count the number of cells in and on your body, you are only 10% human.  That’s right, there are 10 fold more microorganisms living in you and on you than human cells.  And if you examine the unique genetic content of a human organism, only 1% of the genetic information is human, while 99% comes from microorganisms.  You could almost say that we are not human at all, but a ‘composite’ or ‘superorganism’ composed of hundreds if not thousands of organisms.

Many people are indirectly aware of the role microorganisms play in our health.  There are an ever expanding selection of probiotic foods and supplements on the market now, and many people eat their yogurt when they are on antibiotics and reach for the hand sanitizer to prevent the spreading of ‘germs’.  Increasingly, scientists are studying the natural human flora and how it is altered in disease versus good health.  Just cataloging the ‘good’ microbes alone can be a monumental task.  Check out the NIH funded Human Microbiome Poject (HMP, http://commonfund.nih.gov/hmp/), where they are attempting to characterize the microbial communities found throughout the human body.  This five year, $157 million dollar effort will help define the relationship between disease and changes in the human microbiome, develop new technologies, both sequencing and computational, for study these organisms, and establish data analysis and coordinating centers.

What does all of this have to do with making gas?  A lot actually.  Subsurface environments are living systems with complex interactions between the microbial community members and their environment.  These same technologies and approaches used to study the human microbiome are currently being used to study the subsurface by scientists at Luca Technologies.  Furthermore, similar large scale efforts like the HMP have recently been initiated to study the earth microbiome (Earth Microbiome Project, EMP, http://www.earthmicrobiome.org/).  Maintaining the ‘health’ of these microbial communities through the restoration and stimulation of subsurface environments can increase our domestic production of methane for a sustainable source of energy with a greatly reduced impact on the environment than traditional extraction techniques.

So, the next time you eat your yogurt, realize that many of the organisms that help fill your stomach for lunch may eventually fill your car’s fuel tank for the weekend!

Joel R. Sevinsky, Ph.D.
Senior Principal Investigator
Luca Technologies Inc.

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A Note on Geologic Time

A Note on Geologic Time

Geologists are obsessed with age.  They want to know how old rocks are and which rock is older than which.  They talk about thousands and millions of years like they were mere decades and they even have their own odd words like Cambrian, Carboniferous, and Holocene to describe geological time periods.

Geologists estimate Earth’s age to be around 4.6 billion years old[1].  For perspective; if I were to live 100 years, one could fit 46,000,000 of my lifetimes into the current estimate for Earth’s age.  Though helpful, this example still does not do justice to the depth of time that I am trying to describe.  To better appreciate the magnitude of what I am saying, here is another analogy:  if you think of the entire 4.6 billion years of Earth’s age as a single 24-hour day starting and ending at midnight;

  • Free oxygen became present in the atmosphere at 10:42 am.  Up to that time, Earth was a very nasty place.
  • Early life began at 8:58 pm
  • The first land plants evolved at 9:40 pm
  • The first birds and mammals appeared at 10:56 pm
  • Dinosaurs evolved at 10:42 pm and died out at 11:40 pm
  • The last ice age was 3.2 seconds before midnight
  • I was born 0.01 milliseconds before midnight[2].

Here is a morbid thought:  major geological time periods are most often defined by mass extinction events.  This is because these events are readily visible in the fossil record.  When suddenly all of the fossils of one type disappear from the rock record, a geologist can deduce that there was a significant worldwide event which caused the disappearance.  Because of this, these extinction events provide us with excellent benchmarks in time.  A popular example is the Mesozoic Era, or the “Age of Dinosaurs.”  The Era’s beginning is defined by the appearance of dinosaurs approximately 250 million years ago, and ending by their extinction 65 million years ago.  By the way, it should be noted here that the appearance of dinosaurs was immediately preceded by perhaps the largest mass extinction event at the end of the Permian.  Because extinction events do not happen in regular intervals, geological time units can vary dramatically in length.  For instance, the Quarternary Period is 2.6 million years long; whereas the Cambrian Period is 54 million years long.

The largest unit of geologic time is the Eon.  Presently there are four of these and they range from about ½ a billion years to over 2 billion years in size.  The next finer unit is the Era.  Eras are typically several hundred million years each and are made up of Periods (this is the geological time unit with which most people are familiar).  Periods are typically a few tens of millions of years in size.  The finest unit of geologic time commonly used is the Epoch, which is generally single-digit millions of years in size.[3] Presently, we live in the Phanerozoic Eon, Cenozoic Era, Quaternary Period, and Holocene Epoch.

With such vast expanses of time, it should come as no surprise that a lot has happened where you live today and the landscape there can and likely has been very different in the past.  In Earth’s history, continents have formed, broken up, re-combined, been shoved deep into Earth, and re-born.  Mountain ranges have risen, only to be eroded back down again.  Present day deserts have been past oceans, and modern forests sit atop ancient seas.  The only constant on Earth is that it changes.

Jason Burris, P.G.
Regional Geologist
Luca Technologies Inc.


[1] U.S. Geological Survey, 1997, “Age of the Earth,” retrieved from http://pubs.usgs.gov/gip/geotime/age.html on 8 March 2011.

[2] Ages in millions of years are from Press, F. and R. Siever, 1994, Understanding Earth, W.H. Freeman and Company:  New York; and were converted to clock times.

[3] The International Commission on Stratigraphy is responsible for publishing the geologic time scale.  The 2009 version can be found at http://www.stratigraphy.org/upload/ISChart2009.pdf

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Information Visualization–Get Your Head in the (Word) Cloud

One of the most effective methods to communicate information in the workplace is by visual means. This has been done for years using programs such as Microsoft Excel, which transform numerical data into “information graphics” such as pie charts and graphs. What Excel did for numerical data, new web sites such as Wordle (www.wordle.com) and tagxedo (www.tagxedo.com) are doing for written information. These sites generate word-clouds, or word-pictures, emphasizing the frequency of any given word in a document. For example, a Luca Technologies white paper titled, “Active Biogenesis of Methane in Wyoming’s Powder River Basin” transformed at Wordle produces the following image:

Luca Technologies Data Visualization 1

This word cloud, generated from a highly scientific document, communicates the simple vision that we generate methane from coal. Along the same lines, I’ve transformed our annual science objectives into a word cloud and posted it on my office door. From this I get a daily dose of research focus, a high level reminder of how science contributes to our business goals.

The possibilities to learn from word clouds are essentially limitless. If you don’t want to read the two hundred page 2011 Budget of the United States Government, but want to get an idea of where your tax dollars are likely to be spent, copy/paste the PDF found at http://www.gpoaccess.gov/usbudget/fy11/ index.html into tagxedo and with a few mouse clicks you end up with this:

Luca Technologies Data Visualization 2

Along with utility as a communication tool, word clouds are becoming increasingly popular in schools. Through visual communication, teachers can focus learning, advance vocabulary, and even do math exercises. Anybody know what the numbers below represent? The big “1” should be a hint.

Luca Technologies Data Visualization 3

In the end, what a document says is more important than how it says it. Wordle and tagxedo fit the bill for communicating content in an eye catching, succinct way.

Gary Vanzin, Ph.D.
Principal Investigator
Luca Technologies Inc.

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Wyoming Governor Signs Biogenic Gas Bill into Law

Today, Wyoming governor Matt Mead signed into law Senate Bill 116, which establishes a regulatory framework that allows Luca to move one step closer to producing sustainable natural gas from Wyoming coal bed methane wells. This bill is one of the first in the U.S. to recognize this huge, sustainable resource that will help decrease our dependency on foreign sources of energy, provide new jobs, and increase revenues to the State, all while protecting the environment.  This enacted legislation now enables us to begin to address a serious issue effecting Wyoming: the thousands of shut in or abandoned wells – by implementing our technology to help keep the public safe as well as help keep pace with natural gas demand. With over 400 successful well restorations completed to date, we are fully prepared to extend our commercial operations into Wyoming and beyond.

Although the legislative process was a challenging journey, we were fortunate to have help from a group of Senators and Representatives who encouraged the development of the bill and embraced our technology. We would like to thank Senators Jennings and Bebout, and Representatives Jaggi, Stubson and Throne for their continual support and work on this legislation. I would also like to thank the entire Luca team for their commitment to our vision for sustainable natural gas production and their determination to make this legislation a reality.

Over the coming months, the Luca team will be working closely with state and federal agencies to establish rules under this new law that provide for safe production of sustainable natural gas in Wyoming, while protecting both ground water and the environment.  Additionally, we are beginning work on the ground to ready our existing wells for commercial production when the time is right.   We will continue to keep you informed on our progress deploying this important technology.

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Welcome to the Luca Blog!

As CEO of Luca Technologies, I welcome you to our new blog to share in our ideas and vision as we lead the industry in the production of sustainable clean natural gas. We believe that today, social media is just as important in business communications as it is in personal.  Because of this belief we see this blog as a means to connect with our constituent communities about issues important to all of us including the protection of the environment and natural habitats through responsible energy production and well restoration.

In an industry known for secrecy, closed door policies, and walled off operations, Luca Technologies aims to be transparent in sharing with our communities insights and knowledge on how Luca is safely producing natural gas, the locations of production and the process with which we restore wells to produce sustainable natural gas resources.

I will be posting regularly with contributions from other members of the Luca team; everyone, from our operations employees, to our scientists and engineers, to our lab technicians, and to our accountants have been invited to post here. As you read our blog, we hope it serves as a resource and also gives you an insider’s look into our company from the transparency in our fieldwork to our innovations in sustainable energy production.

As always, we encourage comments and questions about Luca, our operations, and our technology.  We hope you participate with us.

Sincerely,

Bob Cavnar
CEO

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