Summit's diversification an algae affair

Nevada could be a major supplier of oil through biofuels, says Tom Gallagher, one of three partners in G3 Op LLC, a Reno-based company that expects to produce commercial grade oil from algae and other growth.

Gallagher is also co-founder, chairman and chief executive officer of Summit Engineering Corp, a civil engineering firm that's operated from headquarters in Reno for 30 years. (Don McHarg is co-founder and executive vice president.)

The company is no stranger to striking out in new directions. Since its founding in 1978 as a civil engineering firm of four, Summit has brought most construction-related functions in house rather than rely on subcontractors, says Gallagher. It's even diversified into hydrology.

But this time, Summit's founders shed their daily duties in order to devote full attention to the diversification effort. Longtime employees were promoted into the top executive positions: Andy Hustad was named president while Clint Thiesse, Andrew Motter and Ryan Cook were named vice presidents.

With offices in Reno, Las Vegas, Ely and Elko, three-quarters of the 105-member staff are based here. Ten employees are set on the biofuels project.

To date, the civil engineering firm has hired chemists. They're working on ways to get source algae from the dewatering ponds built by mining operations.

"Nevada has a source of alkaline water, which algae doesn't mind," says Gallagher and adds that G3 Op is also looking at other untapped natural resources to see how they can be used.

But for now, algae remains the star contender. It can yield a harvest every 14 days and produce 3,000 gallons of oil per acre compared to just 300 gallons from palm oil, he says.

Those algae farms Gallagher envisions aren't limited to mine site wastewaters. Dry alkaline lakebeds such as the Humboldt Sink retain reservoirs beneath which could be pumped to irrigate algae growth, he says.

And private lands are also viable for algae

production.

While other companies, such as Bentley Biofuels, are also working on the algae angle, Gallagher says, "We're working in a totally different direction from others." But he can't say more at this time.

The biofuels project has not yet passed the lab testing stage, but Gallagher expects a working model within a couple of years.

But biofuel production isn't the only new industry Summit's founders are exploring. "We're working with another, highly advanced, technology in mineral, oil and gas exploration," says Gallagher, but who keeps

mum about the details.

Meanwhile, he says, "We have moved Summit in the direction of more mining work: mining claims, exploration geologists, haul roads, and housing for employees." He points to housing for miners under way at Carlin and Eureka and says those are now probably the largest residential developments under construction in the state.

Summit's diversification efforts include other renewable energy products, but as yet, the company isn't releasing details. The firm is also looking for opportunities, such as tribal projects, in Nevada, Montana and Oklahoma.

"I don't see the market turning until late 2009, maybe 2010," says Gallagher. "We're not going to wait for it to happen. We've been fortunate to have kept most of our staff while others have folded up."

That attitude translates to flexible, multi-talented employees, he says. "Frankly, these people don't know what they'll be doing from one day to the next. Ask them 'What do you do?' and they'll say, 'When?'"