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Exxon’s $600 million deal with Synthetic Genomics to brew fuel from algae could mark a coming of age for alternative fuels.

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Dow Chemical and Algenol Biofuels, a start-up company, are set to announce Monday that they will build a demonstration plant that, if successful, would use algae to turn carbon dioxide into ethanol as a vehicle fuel or an ingredient in plastics.

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Some people think of it as going from the fish tank to the gas tank, while others simply call it the power of pond scum. What they are talking about is research to turn algae—the green slimy stuff you find in stagnant water—into a clean replacement for petroleum.

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San Diego, already home to dozens of companies involved in solar or wind energy, would be a major player in the nation's multi-trillion-dollar energy economy if a group of local researchers succeed in turning algae into a commercially viable transportation fuel, something they think they can do within a decade.

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Our proprietary methodology for developing specific growth and productivity traits will help in any algai production system improve its output of inexpensive, oil-rich algae as the raw material for the generation of biofuel." An important note is the current concern of corn-based ethanol impacting the cost of livestock, poultry feed and basic food production. Algae can be grown in the terrain unsuitable for grain, corn or soybeans. In addition, algae production will not impact the cost of feed or food production.

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An industrial technology researcher at Sul Ross State University in Alpine, Texas, is designing and building a solar collector that can be used to process and distribute light and heat to grow algae feedstock for biodiesel. The system will also produce solar and steam-generated electricity.

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Algae holds much promise as a carbon eater and a biofuel. It can be grown in arid climates using waste or polluted water and since it grows so fast each acre of algae produces more energy than from other biofuels. Nor is algae a food crop.

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