ROI-Integrated Commercialization: An Adaptive Pathway for Microalgae Technology

Abstract

Despite numerous practical applications and environmental benefits, microalgae technology is still emerging and has yet to prove itself as a commercially viable industry. The lack of success in finding reliable markets is largely due to an unfavorable return on investment (ROI) under current economic conditions. This is not because microalgae technology lacks profit potential but because the market has yet to recognize microalgae's benefits in monetary terms. However frustrating, we live in a market economy and must live by and adapt to these market forces. Starting with a brief introduction to the basic ROI concept and related variables, this article highlights the importance of integrating ROI considerations into each stage of microalgae technology development—a systematic approach employed by the developers of P2P Photobioreactor Microalgae Technology and highly applicable to other new and emerging technologies. Two practical models—one conceptual and one analytical—are introduced to demonstrate ROI integration with the real life example of P2P Microalgae Technology development. The P2P photobioreactor system is approaching economic viability at a pre-commercial stage due to five major ROI-integrated components: (1) optimum use of free sunlight through spatial attenuation (patented); (2) simple, economical, and chemical-free harvesting (patent ready to file); (3) optimum pH- and nutrient-balanced culture medium (published); (4) reliable water and nutrient recycling system for up to 54 days (trade secret); and (5) low-cost automated system design (trade secret). Although photobioreactor microalgae technology may still need to close the ROI gap for becoming competitive in commodity markets, its current route to commercial success could rely on an adaptive pathway by way of harmonization with and adaptation to prevailing market conditions. Progressively pursuing the manufacture of appropriate products at higher value chains could be an effective current strategy. Although helpful in increasing probability of market success, ROI integration cannot be misconstrued as a panacea in technology development since the developer's skills in embracing high uncertainties, business acumen, and willingness to challenge status quo are also critical.