Race to algae-based biodiesel heats up

A growing number of start-ups are betting against the dominant biofuel crops–corn and soy–and looking to sidestep the backlash against biofuels, which are being blamed in part for higher food prices and deforestation around the world.

Melbourne, Fla.-based PetroAlgae says that it hopes to test a commercial system as early as next year.
The company licensed strains of freshwater algae bred by Arizona State University and is developing the bioreactors and harvesting methods to grow the algae at large scale, said Fred Tennant, PetroAlgae’s vice president of business development.

The algae harvested from open-pond farms can be converted to oil that can be refined into biodiesel. The remaining material can be sold as high-protein animal feed, Tennant said.

Because algae needs a source of carbon dioxide to grow, PetroAlgae is seeking to set up joint ventures with electric utilities looking to reduce their carbon emissions.

CNet