Algae fuel

Biodiesel is a diesel fuel derived from animal or plant lipids (oils and fats). Studies have shown that some species of algae can produce 60% or more of their dry weight in the form of oil.[31][34][44][45][46] Because the cells grow in aqueous suspension, where they have more efficient access to water, CO
₂ and dissolved nutrients, microalgae are capable of producing large amounts of biomass and usable oil in either high rate algal ponds[47] or photobioreactors. This oil can then be turned into biodiesel which could be sold for use in automobiles. Regional production of microalgae and processing into biofuels will provide economic benefits to rural communities.[48]

As they do not have to produce structural compounds such as cellulose for leaves, stems, or roots, and because they can be grown floating in a rich nutritional medium, microalgae can have faster growth rates than terrestrial crops. Also, they can convert a much higher fraction of their biomass to oil than conventional crops, e.g. 60% versus 2-3% for soybeans.[44] The per unit area yield of oil from algae is estimated to be from 58,700 to 136,900 L/ha/year, depending on lipid content, which is 10 to 23 times as high as the next highest yielding crop, oil palm, at 5 950 L/ha/year.[49]

The U.S. Department of Energy's Aquatic Species Program, 1978–1996, focused on biodiesel from microalgae. The final report suggested that biodiesel could be the only viable method by which to produce enough fuel to replace current world diesel usage.[50] If algae-derived biodiesel were to replace the annual global production of 1.1bn tons of conventional diesel then a land mass of 57.3 million hectares would be required, which would be highly favorable compared to other biofuels.[51]

Butanol can be made from algae or diatoms using only a solar powered biorefinery. This fuel has an energy density 10% less than gasoline, and greater than that of either ethanol or methanol. In most gasoline engines, butanol can be used in place of gasoline with no modifications. In several tests, butanol consumption is similar to that of gasoline, and when blended with gasoline, provides better performance and corrosion resistance than that of ethanol or E85.[52]

The green waste left over from the algae oil extraction can be used to produce butanol. In addition, it has been shown that macroalgae (seaweeds) can be fermented by bacteria of genus Clostridia to butanol and other solvents.[53] Transesterification of seaweed oil (into biodiesel) is also possible with species such as Chaetomorpha linum, Ulva lactuca, and Enteromorpha compressa (Ulva).[54]

The following species are being investigated as suitable species from which to produce ethanol and/or butanol:[55]

• Alaria esculenta
• Laminaria saccharina
• Palmaria palmata[56]

Biogasoline is gasoline produced from biomass. Like traditionally produced gasoline, it contains between 6 (hexane) and 12 (dodecane) carbon atoms per molecule and can be used in internal-combustion engines.[57]

Biogas is composed mainly of methane (CH₄) and carbon dioxide (CO₂), with some traces of hydrogen sulphide, oxygen, nitrogen, and hydrogen. Macroalgae has high methane production rate compared to plant biomass. Biogas production from macroalgae is more technically viable compared to other fuels, but it is not economically viable due to the high cost of macroalgae feedstock.[58] Carbohydrate and protein in microalgae can be converted into biogas through anaerobic digestion, which includes hydrolysis, fermentation, and methanogenesis steps. The conversion of algal biomass into methane can potentially recover as much energy as it obtains, but it is more profitable when the algal lipid content is lower than 40%.[59] Biogas production from microalgae is relatively low because of the high ratio of protein in microalgae, but microalgae can be co-digested with high C/N ratio products such as wastepaper.[60] Another method to produce biogas is through gasification, where hydrocarbon is converted to syngas through a partial oxidation reaction at high temperature (typically 800 °C to 1000 °C). Gasification is usually performed with catalysts. Uncatalyzed gasification requires temperature to be about 1300 °C. Syngas can be burnt directly to produce energy or used a fuel in turbine engines. It can also be used as feedstock for other chemical productions.[61]

Methane,[62] the main constituent of natural gas can be produced from algae in various methods, namely gasification, pyrolysis and anaerobic digestion. In gasification and pyrolysis methods methane is extracted under high temperature and pressure. Anaerobic digestion[63] is a straightforward method involved in decomposition of algae into simple components then transforming it into fatty acids using microbes like acidogenic bacteria followed by removing any solid particles and finally adding methanogenic archaea to release a gas mixture containing methane. A number of studies have successfully shown that biomass from microalgae can be converted into biogas via anaerobic digestion.[64][65][66][67][68] Therefore, in order to improve the overall energy balance of microalgae cultivation operations, it has been proposed to recover the energy contained in waste biomass via anaerobic digestion to methane for generating electricity.[69]

The Algenol system which is being commercialized by BioFields in Puerto Libertad, Sonora, Mexico utilizes seawater and industrial exhaust to produce ethanol. Porphyridium cruentum also have shown to be potentially suitable for ethanol production due to its capacity for accumulating large amount of carbohydrates.[70]

Algae can be used to produce 'green diesel' (also known as renewable diesel, hydrotreating vegetable oil[71] or hydrogen-derived renewable diesel)[72] through a hydrotreating refinery process that breaks molecules down into shorter hydrocarbon chains used in diesel engines.[71][73] It has the same chemical properties as petroleum-based diesel[71] meaning that it does not require new engines, pipelines or infrastructure to distribute and use. It has yet to be produced at a cost that is competitive with petroleum.[72] While hydrotreating is currently the most common pathway to produce fuel-like hydrocarbons via decarboxylation/decarbonylation, there is an alternative process offering a number of important advantages over hydrotreating. In this regard, the work of Crocker et al.[74] and Lercher et al.[75] is particularly noteworthy. For oil refining, research is underway for catalytic conversion of renewable fuels by decarboxylation.[76] As the oxygen is present in crude oil at rather low levels, of the order of 0.5%, deoxygenation in petroleum refining is not of much concern, and no catalysts are specifically formulated for oxygenates hydrotreating. Hence, one of the critical technical challenges to make the hydrodeoxygenation of algae oil process economically feasible is related to the research and development of effective catalysts.[77][78]

Trials of using algae as biofuel were carried out by Lufthansa and Virgin Atlantic as early as 2008, although there is little evidence that using algae is a reasonable source for jet biofuels.[79] By 2015, cultivation of fatty acid methyl esters and alkenones from the algae, Isochrysis, was under research as a possible jet biofuel feedstock.[80]

As of 2017, there was little progress in producing jet fuel from algae, with a forecast that only 3 to 5% of fuel needs could be provided from algae by 2050.[81] Further, algae companies that formed in the early 21st century as a base for an algae biofuel industry have either closed or changed their business development toward other commodities, such as cosmetics, animal feed, or specialty oil products.[82]

In May 2022, scientists at University of Cambridge announced they created an algae energy harvester, that uses natural sunlight to power a small microprocessor, initially powering the processor for six months, and then kept going for a full year. The device, which is about the size of AA battery, is a small container with water and blue green algae. The device does not generate a huge amount of power, but it can be used for Internet of Things devices, eliminating the need for traditional batteries such as lithium ion batteries. The goal is to have more a environmentally friendly power source that can be used in remote areas.[83]

The lack of equipment and structures needed to begin growing algae in large quantities has inhibited widespread mass-production of algae for biofuel production. Maximum use of existing agriculture processes and hardware is the goal.[102]

Closed systems (not exposed to open air) avoid the problem of contamination by other organisms blown in by the air. The problem of a closed system is finding a cheap source of sterile CO
₂. Several experimenters have found the CO
₂ from a smokestack works well for growing algae.[103][104] For reasons of economy, some experts think that algae farming for biofuels will have to be done as part of cogeneration, where it can make use of waste heat and help soak up pollution.[105][106]

To produce micro-algae at large-scale under controlled environment using PBR system, strategies such as light guides, sparger, and PBR construction materials required should be well considered.[107]

Most companies pursuing algae as a source of biofuels pump nutrient-rich water through plastic or borosilicate glass tubes (called "bioreactors" ) that are exposed to sunlight (and so-called photobioreactors or PBR).

Running a PBR is more difficult than using an open pond, and costlier, but may provide a higher level of control and productivity.[45] In addition, a photobioreactor can be integrated into a closed loop cogeneration system much more easily than ponds or other methods.

Open pond systems consist of simple in ground ponds, which are often mixed by a paddle wheel. These systems have low power requirements, operating costs, and capital costs when compared to closed loop photobioreactor systems.[108] Nearly all commercial algae producers for high value algal products utilize open pond systems.[109]

2.5 acre ATS system, installed by Hydromentia on a farm creek in Florida

The Algae scrubber is a system designed primarily for cleaning nutrients and pollutants out of water using algal turfs. An algal turf scrubber (ATS) mimics the algal turfs of a natural coral reef by taking in nutrient rich water from waste streams or natural water sources, and pulsing it over a sloped surface.[110] This surface is coated with a rough plastic membrane or a screen, which allows naturally occurring algal spores to settle and colonize the surface. Once the algae has been established, it can be harvested every 5–15 days,[111] and can produce 18 metric tons of algal biomass per hectare per year.[112] In contrast to other methods, which focus primarily on a single high yielding species of algae, this method focuses on naturally occurring polycultures of algae. As such, the lipid content of the algae in an ATS system is usually lower, which makes it more suitable for a fermented fuel product, such as ethanol, methane, or butanol.[112] Conversely, the harvested algae could be treated with a hydrothermal liquefaction process, which would make possible biodiesel, gasoline, and jet fuel production.[113]

There are three major advantages of ATS over other systems. The first advantage is documented higher productivity over open pond systems.[114] The second is lower operating and fuel production costs. The third is the elimination of contamination issues due to the reliance on naturally occurring algae species. The projected costs for energy production in an ATS system are $0.75/kg, compared to a photobioreactor which would cost $3.50/kg.[112] Furthermore, due to the fact that the primary purpose of ATS is removing nutrients and pollutants out of water, and these costs have been shown to be lower than other methods of nutrient removal, this may incentivize the use of this technology for nutrient removal as the primary function, with biofuel production as an added benefit.[115]

Algae being harvested and dried from an ATS system

Often, the algae is dehydrated, and then a solvent such as hexane is used to extract energy-rich compounds like triglycerides from the dried material.[1] [117]Then, the extracted compounds can be processed into fuel using standard industrial procedures. For example, the extracted triglycerides are reacted with methanol to create biodiesel via transesterification.[1] The unique composition of fatty acids of each species influences the quality of the resulting biodiesel and thus must be taken into account when selecting algal species for feedstock.[45]

An alternative approach called Hydrothermal liquefaction employs a continuous process that subjects harvested wet algae to high temperatures and pressures—350 °C (662 °F) and 3,000 pounds per square inch (21,000 kPa).[118][119][120]

Products include crude oil, which can be further refined into aviation fuel, gasoline, or diesel fuel using one or many upgrading processes.[121] The test process converted between 50 and 70 percent of the algae's carbon into fuel. Other outputs include clean water, fuel gas and nutrients such as nitrogen, phosphorus, and potassium.[118]

Bubbling CO
₂ through algal cultivation systems can greatly increase productivity and yield (up to a saturation point). Typically, about 1.8 tonnes of CO
₂ will be utilised per tonne of algal biomass (dry) produced, though this varies with algae species.[123] The Glenturret Distillery in Perthshire percolate CO
₂ made during the whisky distillation through a microalgae bioreactor. Each tonne of microalgae absorbs two tonnes of CO
₂. Scottish Bioenergy, who run the project, sell the microalgae as high value, protein-rich food for fisheries. In the future, they will use the algae residues to produce renewable energy through anaerobic digestion.[124]

Nitrogen is a valuable substrate that can be utilized in algal growth. Various sources of nitrogen can be used as a nutrient for algae, with varying capacities. Nitrate was found to be the preferred source of nitrogen, in regards to amount of biomass grown. Urea is a readily available source that shows comparable results, making it an economical substitute for nitrogen source in large scale culturing of algae.[125] Despite the clear increase in growth in comparison to a nitrogen-less medium, it has been shown that alterations in nitrogen levels affect lipid content within the algal cells. In one study[126] nitrogen deprivation for 72 hours caused the total fatty acid content (on a per cell basis) to increase by 2.4-fold. 65% of the total fatty acids were esterified to triacylglycerides in oil bodies, when compared to the initial culture, indicating that the algal cells utilized de novo synthesis of fatty acids. It is vital for the lipid content in algal cells to be of high enough quantity, while maintaining adequate cell division times, so parameters that can maximize both are under investigation.

A possible nutrient source is wastewater from the treatment of sewage, agricultural, or flood plain run-off, all currently major pollutants and health risks. However, this waste water cannot feed algae directly and must first be processed by bacteria, through anaerobic digestion. If waste water is not processed before it reaches the algae, it will contaminate the algae in the reactor, and at the very least, kill much of the desired algae strain. In biogas facilities, organic waste is often converted to a mixture of carbon dioxide, methane, and organic fertilizer. Organic fertilizer that comes out of the digester is liquid, and nearly suitable for algae growth, but it must first be cleaned and sterilized.[127]

The utilization of wastewater and ocean water instead of freshwater is strongly advocated due to the continuing depletion of freshwater resources. However, heavy metals, trace metals, and other contaminants in wastewater can decrease the ability of cells to produce lipids biosynthetically and also impact various other workings in the machinery of cells. The same is true for ocean water, but the contaminants are found in different concentrations. Thus, agricultural-grade fertilizer is the preferred source of nutrients, but heavy metals are again a problem, especially for strains of algae that are susceptible to these metals. In open pond systems the use of strains of algae that can deal with high concentrations of heavy metals could prevent other organisms from infesting these systems.[100] In some instances it has even been shown that strains of algae can remove over 90% of nickel and zinc from industrial wastewater in relatively short periods of time.[128]

Nearly all research in algal biofuels has focused on culturing single species, or monocultures, of microalgae. However, ecological theory and empirical studies have demonstrated that plant and algae polycultures, i.e. groups of multiple species, tend to produce larger yields than monocultures.[142][143][144][145] Experiments have also shown that more diverse aquatic microbial communities tend to be more stable through time than less diverse communities.[146][147][148][149] Recent studies found that polycultures of microalgae produced significantly higher lipid yields than monocultures.[150][151] Polycultures also tend to be more resistant to pest and disease outbreaks, as well as invasion by other plants or algae.[152] Thus culturing microalgae in polyculture may not only increase yields and stability of yields of biofuel, but also reduce the environmental impact of an algal biofuel industry.[132]

One of the main advantages that using microalgae as the feedstock when compared to more traditional crops is that it can be grown much more easily.[170] Algae can be grown in land that would not be considered suitable for the growth of the regularly used crops.[101] In addition to this, wastewater that would normally hinder plant growth has been shown to be very effective in growing algae.[170] Because of this, algae can be grown without taking up arable land that would otherwise be used for producing food crops, and the better resources can be reserved for normal crop production. Microalgae also require fewer resources to grow and little attention is needed, allowing the growth and cultivation of algae to be a very passive process.[101]

Many traditional feedstocks for biodiesel, such as corn and palm, are also used as feed for livestock on farms, as well as a valuable source of food for humans. Because of this, using them as biofuel reduces the amount of food available for both, resulting in an increased cost for both the food and the fuel produced. Using algae as a source of biodiesel can alleviate this problem in a number of ways. First, algae is not used as a primary food source for humans, meaning that it can be used solely for fuel and there would be little impact in the food industry.[171] Second, many of the waste-product extracts produced during the processing of algae for biofuel can be used as a sufficient animal feed. This is an effective way to minimize waste and a much cheaper alternative to the more traditional corn- or grain-based feeds.[172]

Growing algae as a source of biofuel has also been shown to have numerous environmental benefits, and has presented itself as a much more environmentally friendly alternative to current biofuels. For one, it is able to utilize run-off, water contaminated with fertilizers and other nutrients that are a by-product of farming, as its primary source of water and nutrients.[170] Because of this, it prevents this contaminated water from mixing with the lakes and rivers that currently supply our drinking water. In addition to this, the ammonia, nitrates, and phosphates that would normally render the water unsafe actually serve as excellent nutrients for the algae, meaning that fewer resources are needed to grow the algae.[101] Many algae species used in biodiesel production are excellent bio-fixers, meaning they are able to remove carbon dioxide from the atmosphere to use as a form of energy for themselves. Because of this, they have found use in industry as a way to treat flue gases and reduce GHG emissions.[101]

The process of microalgae cultivation is highly water-intensive. Life cycle studies estimated that the production of 1 liter of microalgae based biodiesel requires between 607 and 1944 liters of water.[173] That said, abundant wastewater and/or seawater, which also contain various nutrients, can theoretically be used for this purpose instead of freshwater.

Algae biodiesel is still a fairly new technology. Despite the fact that research began over 30 years ago, it was put on hold during the mid-1990s, mainly due to a lack of funding and a relatively low petroleum cost.[38] For the next few years algae biofuels saw little attention; it was not until the gas peak of the early 2000s that it eventually had a revitalization in the search for alternative fuel sources.[38] While the technology exists to harvest and convert algae into a usable source of biodiesel, it still hasn't been implemented into a large enough scale to support the current energy needs. Further research will be required to make the production of algae biofuels more efficient, and at this point it is currently being held back by lobbyists in support of alternative biofuels, like those produced from corn and grain.[38] In 2013, Exxon Mobil Chairman and CEO Rex Tillerson said that after originally committing to spending up to $600 million on development in a joint venture with J. Craig Venter's Synthetic Genomics, algae is "probably further" than "25 years away" from commercial viability,[15] although Solazyme[18] and Sapphire Energy[19] already began small-scale commercial sales in 2012 and 2013, respectively. By 2017, most efforts had been abandoned or changed to other applications, with only a few remaining.[21] It is expected that, due to economies of scale and mechanization, the price of seaweed fuel production costs can still be reduced by up to 100%.[174]

The biodiesel produced from the processing of microalgae differs from other forms of biodiesel in the content of polyunsaturated fats.[170] Polyunsaturated fats are known for their ability to retain fluidity at lower temperatures. While this may seem like an advantage in production during the colder temperatures of the winter, the polyunsaturated fats result in lower stability during regular seasonal temperatures.[171]

The National Renewable Energy Laboratory (NREL) is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. This program is involved in the production of renewable energies and energy efficiency. One of its most current divisions is the biomass program which is involved in biomass characterization, biochemical and thermochemical conversion technologies in conjunction with biomass process engineering and analysis. The program aims at producing energy efficient, cost-effective and environmentally friendly technologies that support rural economies, reduce the nations dependency in oil and improve air quality.[175]

At the Woods Hole Oceanographic Institution and the Harbor Branch Oceanographic Institution the wastewater from domestic and industrial sources contain rich organic compounds that are being used to accelerate the growth of algae.[43] The Department of Biological and Agricultural Engineering at University of Georgia is exploring microalgal biomass production using industrial wastewater.[176] Algaewheel, based in Indianapolis, Indiana, presented a proposal to build a facility in Cedar Lake, Indiana that uses algae to treat municipal wastewater, using the sludge byproduct to produce biofuel.[177][178] A similar approach is being followed by Algae Systems, a company based in Daphne, Alabama.[179]

Sapphire Energy (San Diego) has produced green crude from algae.

Solazyme (South San Francisco, California) has produced a fuel suitable for powering jet aircraft from algae.[180]

The Marine Research station in Ketch Harbour, Nova Scotia, has been involved in growing algae for 50 years. The National Research Council (Canada) (NRC) and National Byproducts Program have provided $5 million to fund this project. The aim of the program has been to build a 50 000-litre cultivation pilot plant at the Ketch harbor facility. The station has been involved in assessing how best to grow algae for biofuel and is involved in investigating the utilization of numerous algae species in regions of North America. NRC has joined forces with the United States Department of Energy, the National Renewable Energy Laboratory in Colorado and Sandia National Laboratories in New Mexico.[175]

Universities in the United Kingdom which are working on producing oil from algae include: University of Manchester, University of Sheffield, University of Glasgow, University of Brighton, University of Cambridge, University College London, Imperial College London, Cranfield University and Newcastle University. In Spain, it is also relevant the research carried out by the CSIC's Instituto de Bioquímica Vegetal y Fotosíntesis (Microalgae Biotechnology Group, Seville).[181]

The European Algae Biomass Association (EABA) is the European association representing both research and industry in the field of algae technologies, currently with 79 members. The association is headquartered in Florence, Italy. The general objective of the EABA is to promote mutual interchange and cooperation in the field of biomass production and use, including biofuels uses and all other utilisations. It aims at creating, developing and maintaining solidarity and links between its Members and at defending their interests at European and international level. Its main target is to act as a catalyst for fostering synergies among scientists, industrialists and decision makers to promote the development of research, technology and industrial capacities in the field of Algae.

CMCL innovations and the University of Cambridge are carrying out a detailed design study of a C-FAST[182] (Carbon negative Fuels derived from Algal and Solar Technologies) plant. The main objective is to design a pilot plant which can demonstrate production of hydrocarbon fuels (including diesel and gasoline) as sustainable carbon-negative energy carriers and raw materials for the chemical commodity industry. This project will report in June 2013.

Ukraine plans to produce biofuel using a special type of algae.[183]

The European Commission's Algae Cluster Project, funded through the Seventh Framework Programme, is made up of three algae biofuel projects, each looking to design and build a different algae biofuel facility covering 10ha of land. The projects are BIOFAT, All-Gas and InteSusAl.[184]

Since various fuels and chemicals can be produced from algae, it has been suggested to investigate the feasibility of various production processes (conventional extraction/separation, hydrothermal liquefaction, gasification and pyrolysis) for application in an integrated algal biorefinery.[185]

Reliance Industries in collaboration with Algenol, USA commissioned a pilot project to produce algal bio-oil in the year 2014.[186] Spirulina which is an alga rich in proteins content has been commercially cultivated in India. Algae is used in India for treating the sewage in open/natural oxidation ponds This reduces the Biological Oxygen Demand (BOD) of the sewage and also provides algal biomass which can be converted to fuel.[187]

The Algae Biomass Organization (ABO)[188] is a non-profit organization whose mission is "to promote the development of viable commercial markets for renewable and sustainable commodities derived from algae".

The National Algae Association (NAA) is a non-profit organization of algae researchers, algae production companies and the investment community who share the goal of commercializing algae oil as an alternative feedstock for the biofuels markets. The NAA gives its members a forum to efficiently evaluate various algae technologies for potential early stage company opportunities.

Pond Biofuels Inc.[189] in Ontario, Canada has a functioning pilot plant where algae is grown directly off of smokestack emissions from a cement plant, and dried using waste heat.[106] In May 2013, Pond Biofuels announced a partnership with the National Research Council of Canada and Canadian Natural Resources Limited to construct a demonstration-scale algal biorefinery at an oil sands site near Bonnyville, Alberta.[190]

Ocean Nutrition Canada in Halifax, Nova Scotia, Canada has found a new strain of algae that appears capable of producing oil at a rate 60 times greater than other types of algae being used for the generation of biofuels.[191]

VG Energy, a subsidiary of Viral Genetics Incorporated,[192] claims to have discovered a new method of increasing algal lipid production by disrupting the metabolic pathways that would otherwise divert photosynthetic energy towards carbohydrate production. Using these techniques, the company states that lipid production could be increased several-fold, potentially making algal biofuels cost-competitive with existing fossil fuels.

Algae production from the warm water discharge of a nuclear power plant has been piloted by Patrick C. Kangas at Peach Bottom Nuclear Power Station, owned by Exelon Corporation. This process takes advantage of the relatively high temperature water to sustain algae growth even during winter months.[193]

Companies such as Sapphire Energy and Bio Solar Cells[194] are using genetic engineering to make algae fuel production more efficient. According to Klein Lankhorst of Bio Solar Cells, genetic engineering could vastly improve algae fuel efficiency as algae can be modified to only build short carbon chains instead of long chains of carbohydrates.[195] Sapphire Energy also uses chemically induced mutations to produce algae suitable for use as a crop.[196]

Some commercial interests into large-scale algal-cultivation systems are looking to tie into existing infrastructures, such as cement factories,[106] coal power plants, or sewage treatment facilities. This approach changes wastes into resources to provide the raw materials, CO
₂ and nutrients, for the system.[197]

A feasibility study using marine microalgae in a photobioreactor is being done by The International Research Consortium on Continental Margins at the Jacobs University Bremen.[198]

The Department of Environmental Science at Ateneo de Manila University in the Philippines, is working on producing biofuel from a local species of algae.[199]

Genetic engineering algae has been used to increase lipid production or growth rates. Current research in genetic engineering includes either the introduction or removal of enzymes. In 2007 Oswald et al. introduced a monoterpene synthase from sweet basil into Saccharomyces cerevisiae, a strain of yeast.[200] This particular monoterpene synthase causes the de novo synthesis of large amounts of geraniol, while also secreting it into the medium. Geraniol is a primary component in rose oil, palmarosa oil, and citronella oil as well as essential oils, making it a viable source of triacylglycerides for biodiesel production.[201]

The enzyme ADP-glucose pyrophosphorylase is vital in starch production, but has no connection to lipid synthesis. Removal of this enzyme resulted in the sta6 mutant, which showed increased lipid content. After 18 hours of growth in nitrogen deficient medium the sta6 mutants had on average 17 ng triacylglycerides/1000 cells, compared to 10 ng/1000 cells in WT cells. This increase in lipid production was attributed to reallocation of intracellular resources, as the algae diverted energy from starch production.[202]

In 2013 researchers used a "knock-down" of fat-reducing enzymes (multifunctional lipase/phospholipase/acyltransferase) to increase lipids (oils) without compromising growth. The study also introduced an efficient screening process. Antisense-expressing knockdown strains 1A6 and 1B1 contained 2.4- and 3.3-fold higher lipid content during exponential growth, and 4.1- and 3.2-fold higher lipid content after 40 h of silicon starvation.[203][204]

In 2014, Ecover announced a laundry product, made from algae oil of which the algae were genetically modified.[205]

Numerous Funding programs have been created with aims of promoting the use of Renewable Energy. In Canada, the ecoAgriculture biofuels capital initiative (ecoABC) provides $25 million per project to assist farmers in constructing and expanding a renewable fuel production facility. The program has $186 million set aside for these projects. The sustainable development (SDTC) program has also applied $500 million over 8 years to assist with the construction of next-generation renewable fuels. In addition, over the last 2 years $10 million has been made available for renewable fuel research and analysis[206]

In Europe, the Seventh Framework Programme (FP7) is the main instrument for funding research. Similarly, the NER 300 is an unofficial, independent portal dedicated to renewable energy and grid integration projects. Another program includes the Horizon 2020 program which will start 1 January, and will bring together the framework program and other EC innovation and research funding into a new integrated funding system[207]

The American NBB's Feedstock Development program is addressing production of algae on the horizon to expand available material for biodiesel in a sustainable manner.[208]

Numerous policies have been put in place since the 1975 oil crisis in order to promote the use of Renewable Fuels in the United States, Canada and Europe. In Canada, these included the implementation of excise taxes exempting propane and natural gas which was extended to ethanol made from biomass and methanol in 1992. The federal government also announced their renewable fuels strategy in 2006 which proposed four components: increasing availability of renewable fuels through regulation, supporting the expansion of Canadian production of renewable fuels, assisting farmers to seize new opportunities in this sector and accelerating the commercialization of new technologies. These mandates were quickly followed by the Canadian provinces:

BC introduced a 5% ethanol and 5% renewable diesel requirement which was effective by January 2010. It also introduced a low carbon fuel requirement for 2012 to 2020.

Alberta introduced a 5% ethanol and 2% renewable diesel requirement implemented April 2011. The province also introduced a minimum 25% GHG emission reduction requirement for qualifying renewable fuels.

Saskatchewan implemented a 2% renewable diesel requirement in 2009.[209]

Additionally, in 2006, the Canadian Federal Government announced its commitment to using its purchasing power to encourage the biofuel industry. Section three of the 2006 alternative fuels act stated that when it is economically feasible to do so-75% per cent of all federal bodies and crown corporation will be motor vehicles.[206]

The National Research Council of Canada has established research on Algal Carbon Conversion as one of its flagship programs.[210] As part of this program, the NRC made an announcement in May 2013 that they are partnering with Canadian Natural Resources Limited and Pond Biofuels to construct a demonstration-scale algal biorefinery near Bonnyville, Alberta.[190]

Policies in the United States have included a decrease in the subsidies provided by the federal and state governments to the oil industry which have usually included $2.84 billion. This is more than what is actually set aside for the biofuel industry. The measure was discussed at the G20 in Pittsburgh where leaders agreed that "inefficient fossil fuel subsidies encourage wasteful consumption, reduce our energy security, impede investment in clean sources and undermine efforts to deal with the threat of climate change". If this commitment is followed through and subsidies are removed, a fairer market in which algae biofuels can compete will be created. In 2010, the U.S. House of Representatives passed a legislation seeking to give algae-based biofuels parity with cellulose biofuels in federal tax credit programs. The algae-based renewable fuel promotion act (HR 4168) was implemented to give biofuel projects access to a $1.01 per gal production tax credit and 50% bonus depreciation for biofuel plant property. The U.S Government also introduced the domestic Fuel for Enhancing National Security Act implemented in 2011. This policy constitutes an amendment to the Federal property and administrative services act of 1949 and federal defense provisions in order to extend to 15 the number of years that the Department of Defense (DOD) multiyear contract may be entered into the case of the purchase of advanced biofuel. Federal and DOD programs are usually limited to a 5-year period[211]

The European Union (EU) has also responded by quadrupling the credits for second-generation algae biofuels which was established as an amendment to the Biofuels and Fuel Quality Directives[207]

Founded in 2006, Algenol Biofuels is a global, industrial biotechnology company that is commercializing its patented algae technology for production of ethanol and other fuels. Based in Southwest Florida, Algenol's patented technology enables the production of the four most important fuels (ethanol, gasoline, jet, and diesel fuel) using proprietary algae, sunlight, carbon dioxide and saltwater for around $1.27 per gallon and at production levels of 8 000 total gallons of liquid fuel per acre per year. Algenol's technology produces high yields and relies on patented photobioreactors and proprietary downstream techniques for low-cost fuel production using carbon dioxide from industrial sources.[212] The company originally intended on producing commercially by 2014, but was set back when Florida Governor Rick Scott signed a bill in 2013 eliminating the state's mandate of a minimum of 10% ethanol in commercial gasoline.[213] This caused Algenol CEO Paul Woods to scrap a plan for a US$500 million plant to produce commercial amounts of algae biofuels and pursue other job sites. Currently, Algenol is a partner of the US Department of Energy's Bioenergy Technologies Office, and in 2015 began smaller-scale commercial sales of E15 and E85 ethanol blends to Protec Fuel, a Florida-based fuel distributor.[214]

Blue Marble Production is a Seattle-based company that is dedicated to removing algae from algae-infested water. This in turn cleans up the environment and allows this company to produce biofuel. Rather than just focusing on the mass production of algae, this company focuses on what to do with the byproducts. This company recycles almost 100% of its water via reverse osmosis, saving about 26 000 gallons of water every month. This water is then pumped back into their system. The gas produced as a byproduct of algae will also be recycled by being placed into a photobioreactor system that holds multiple strains of algae. Whatever gas remains is then made into pyrolysis oil by thermochemical processes. Not only does this company seek to produce biofuel, but it also wishes to use algae for a variety of other purposes such as fertilizer, food flavoring, anti-inflammatory, and anti-cancer drugs.[215]

Solazyme is one of a handful of companies which is supported by oil companies such as Chevron. Additionally, this company is also backed by Imperium Renewables, Blue Crest Capital Finance, and The Roda Group. Solazyme has developed a way to use up to 80% percent of dry algae as oil.[216] This process requires the algae to grow in a dark fermentation vessel and be fed by carbon substrates within their growth media. The effect is the production of triglycerides that are almost identical to vegetable oil. Solazyme's production method is said to produce more oil than those algae cultivated photosynthetically or made to produce ethanol. Oil refineries can then take this algal oil and turn it into biodiesel, renewable diesel or jet fuels.

Part of Solazyme's testing, in collaboration with Maersk Line and the US Navy, placed 30 tons of Soladiesel(RD) algae fuel into the 98,000-tonne, 300-metre container ship Maersk Kalmar. This fuel was used at blends from 7% to 100% in an auxiliary engine on a month-long trip from Bremerhaven, Germany to Pipavav, India in Dec 2011. In Jul 2012, The US Navy used 700 000 gallons of HRD76 biodiesel in three ships of the USS Nimitz "Green Strike Group" during the 2012 RIMPAC exercise in Hawaii. The Nimitz also used 200 000 gallons of HRJ5 jet biofuel. The 50/50 biofuel blends were provided by Solazyme and Dynamic Fuels.[217][218][219]

Sapphire Energy is a leader in the algal biofuel industry backed by the Wellcome Trust, Bill Gates' Cascade Investment, Monsanto, and other large donors.[220] After experimenting with production of various algae fuels beginning in 2007, the company now focuses on producing what it calls "green crude" from algae in open raceway ponds. After receiving more than $100 million in federal funds in 2012, Sapphire built the first commercial demonstration algae fuel facility in New Mexico and has continuously produced biofuel since completion of the facility in that year.[220] In 2013, Sapphire began commercial sales of algal biofuel to Tesoro, making it one of the first companies, along with Solazyme, to sell algae fuel on the market.[19]

Diversified Technologies Inc. has created a patent pending pre-treatment option to reduce costs of oil extraction from algae. This technology, called Pulsed Electric Field (PEF) technology, is a low cost, low energy process that applies high voltage electric pulses to a slurry of algae.[221] The electric pulses enable the algal cell walls to be ruptured easily, increasing the availability of all cell contents (Lipids, proteins and carbohydrates), allowing the separation into specific components downstream. This alternative method to intracellular extraction has shown the capability to be both integrated in-line as well as scalable into high yield assemblies. The Pulse Electric Field subjects the algae to short, intense bursts of electromagnetic radiation in a treatment chamber, electroporating the cell walls. The formation of holes in the cell wall allows the contents within to flow into the surrounding solution for further separation. PEF technology only requires 1-10 microsecond pulses, enabling a high-throughput approach to algal extraction.

Preliminary calculations have shown that utilization of PEF technology would only account for $0.10 per gallon of algae derived biofuel produced. In comparison, conventional drying and solvent-based extractions account for $1.75 per gallon. This inconsistency between costs can be attributed to the fact that algal drying generally accounts for 75% of the extraction process.[222] Although a relatively new technology, PEF has been successfully used in both food decomtamination processes as well as waste water treatments.[223]

Origin Oils Inc. has been researching a method called the Helix Bioreactor,[224] altering the common closed-loop growth system. This system utilizes low energy lights in a helical pattern, enabling each algal cell to obtain the required amount of light.[225] Sunlight can only penetrate a few inches through algal cells, making light a limiting reagent in open-pond algae farms. Each lighting element in the bioreactor is specially altered to emit specific wavelengths of light, as a full spectrum of light is not beneficial to algae growth. In fact, ultraviolet irradiation is actually detrimental as it inhibits photosynthesis, photoreduction, and the 520 nm light-dark absorbance change of algae.[226]

This bioreactor also addresses another key issue in algal cell growth; introducing CO₂ and nutrients to the algae without disrupting or over-aerating the algae. Origin Oils Inc. combats this issues through the creation of their Quantum Fracturing technology. This process takes the CO₂ and other nutrients, fractures them at extremely high pressures and then deliver the micron sized bubbles to the algae. This allows the nutrients to be delivered at a much lower pressure, maintaining the integrity of the cells.[225]

Proviron is a Belgian microalgae company that also operates in the United States. The company has been working on a new type of reactor (using flat plates) which reduces the cost of algae cultivation. At AlgaePARC similar research is being conducted using 4 grow systems (1 open pond system and 3 types of closed systems). According to René Wijffels the current systems do not yet allow algae fuel to be produced competitively. However using new (closed) systems, and by scaling up the production it would be possible to reduce costs by 10X, up to a price of 0,4 € per kg of algae.[227] Currently, Proviron focuses primarily on alternative uses of algae cultures, such as environmentally-conscious plastics, esterification processes, and de-icing processes.[228]

Genifuel Corporation has licensed the high temperature/pressure fuel extraction process and has been working with the team at the lab since 2008. The company intends to team with some industrial partners to create a pilot plant using this process to make biofuel in industrial quantities.[118] Genifuel process combines hydrothermal liquefaction with catalytic hydrothermal gasification in reactor running at 350 degrees Celsius (662 degrees Fahrenheit) and pressure of 20 684.2719 kPa (3 000 PSI).[229]

Qeshm Microalgae Biorefinery Co. (QMAB) is an Iran-based biofuels company operating solely on the Iranian island of Qeshm in the Strait of Hormuz. QMAB's original pilot plant has been operating since 2009, and has a 25,000 Litre capacity.[230] In 2014, QMAB released BAYA Biofuel, a biofuel deriving from the algae Nannochloropsis, and has since specified that its unique strain is up to 68% lipids by dry weight volume.[230] Development of the farm mainly focuses on 2 phases, production of nutraceutical products and green crude oil to produce biofuel. The main product of their microalgae culture is crude oil, which can be fractioned into the same kinds of fuels and chemical compounds.[231]