Editor’s Note: Meeting the Challenge is an open-ended series from EnergytechStocks.com intended to build a blueprint for how the world can meet the incredible increase in all forms of energy that will be needed by 2030 without endangering the environment or nations’ security. In the coming weeks and months, recognized experts will share their ideas, and important new investment themes (including some that could turn out to be worth many billions of dollars) should emerge.

Posted: September 10, 2007

While the power of ocean waves and currents increasingly is being counted as a source of non-polluting electrical generation, Matthew Simmons says the sea’s bounty doesn’t stop there.

Simmons, the Houston energy investment banker whose concerns about a sharp falloff in global oil production have made him one of the most recognized – and controversial – figures in energy, told EnergyTechStocks.com that the micro algae found in oceans has much higher oil content than either corn or palm oil, two of the world’s leading sources for ethanol and biodiesel, respectively.

Both of these biofuels are increasingly being produced in order to relieve the pressure on crude oil production in the face of ever stronger global demand fueled largely by economic growth in China and India, and by American motorists’ lifestyles.

“Call it seaweed, if you want,” Simmons said. Whatever you call it, Simmons said the world must start harvesting this micro algae using what he called “underwater lawnmowers.”

Simmons acknowledged that any plan for large scale harvesting of micro algae likely would be strongly opposed by environmentalists. His blunt message to them: “Get over it. We’ve already destroyed the fish stock.”

Simmons has been putting his money where his mouth is. He founded an ocean energy institute to investigate the potential of micro algae as a new source of oil. According to Simmons, micro algae has a fat content of roughly 25%, far higher than the 2% to 3% fat content of corn and the 6% to 7% fat content of palm oil.

“There’s still so much about the oceans to be discovered,” he said, including its potential to add to the world’s supply of oil.

Part 4 of Simmons Series will run on Wednesday, September 12