Tesla-inspired Japanese pond scum venture bets big on jet fuel

A tiny algae developer in Japan is betting its survival on biofuels in a big way -- a bravado its director says matches only that of Elon Musk’s. Euglena Co., a Tokyo-based maker of nutritional supplements, is spending US$53m on building a test refinery that converts algae into biofuel used to power jets and vehicles. The investment is equal to about half of last year’s total revenue, though it’ll only produce 5 barrels a day. For comparison, larger processor JXTG Holdings Inc. has a daily refining capacity of about 320,000 barrels at its biggest plant. “The fact that a company with a revenue of our size is investing in facilities that won’t make a profit means we’re risking everything,” Euglena’s director Akihiko Nagata said. Nagata sees the test refinery as a major step toward building and operating a commercial biofuel plant that can produce 2,000 barrels a day of jet fuel and diesel by 2025, and the company has the backing of JXTG, the country’s biggest refiner, as well as major airline ANA.<br/>