Entrepreneurs Wade Into the 'Dead Zone'

Every spring, fertilizer runoff from the U.S. Mississippi River floods into the Gulf of Mexico, causing a massive algae bloom that leads to a giant oxygen-deprived "dead zone" where fish can't survive.

Now, this annual problem is getting new attention, not from marine scientists but from entrepreneurs looking for a new domestic source of fuel. And one start-up sees fish themselves being part of the process.

The algae blooms are spawned each year as the farmland runoff from as far away as Montana flows into rivers, eventually reaching the Mississippi and flowing into Louisiana bayous and out into the Gulf of Mexico. These nutrients are a buffet for the floating algae, or phytoplankton, which are simple sea organisms that eat and reproduce quickly. This algae bloom eventually sinks and feeds an array for bacteria, which suck up so much oxygen that fish and plants either move away or perish.

These so-called hypoxic areas exist around the world, and there were as many as 200 in North America in the spring, says Robert J. Diaz, a professor of marine science at the College of William & Mary in Virginia. The Gulf of Mexico dead zone is the second largest in the world, after one in the Baltic Sea.

Scientists have been studying dead zones for decades, and the concern about their effect on ocean life has grown. The Louisiana seafood industry worries that dead zones threaten the ecosystems that support the state's $1 billion shrimp industry as well as other fisheries. Environmental groups are concerned that the runoff from agricultural fertilizer is threatening a natural ecosystem and pushing it toward collapse.

Turning algae into a bio-based oil to run in conventional refineries alongside crude has been a long-held dream of biofuels entrepreneurs. Exxon Mobil Corp. last month announced a partnership with Synthetic Genomics Inc., a privately held biotech firm owned by genomics scientist J. Craig Venter, to spend as much as $600 million working on developing algae biofuels. Greener Dawn Research estimates that privately held start-ups Sapphire Energy and Solazyme Inc. have raised more than $75 million for their own algae-to-fuel effort.

Thus far, both of those projects plan to raise their algae stocks in controlled facilities onshore.

more from the Wall Street Journal