The folks that are thinking jet fuel and/or diesel right now are taking algae seriously. The following was in "Popular Mechanics," of all things, but the references do check out.
"Two years ago, there were less than a handful of companies chasing the next wave of so-called "pond scum" power. Today, there are dozens, many backed by big energy industry players such as Chevron and Shell. Last year, DARPA granted UOP $6.7 million to study how "second-generation" feedstocks, or nonfood crops, could turn into JP-8 jet fuel for U.S. Air Force and NATO fighters. Just this month, Airbus and JetBlue announced goals to replace 30 percent of jet fuel with second-gen biofuels by 2030. Air New Zealand and Dutch airline KLM have similar plans in the works. "
The reason is that Air Force money funded a breakthrough in bio-JP-8 from soybean feedstock (at U-ND) that wouldn't slurry until -60 degrees C. That university-acquired knowledge is being licensed to anyone who will try to mass-produce it. It offers the Air Force a sustainable fuel source for potential future conflicts - a HUGE concern for them, and it offers ailing airlines a way to hedge Jet-A in an increasingly hostile economic climate.
The US government study begun under Carter and killed by Clinton has a terrific amount of technical information in it. What it doesn't have is a road map to mass production. The Dutch are going for it, funded by Air France and KLM. In the US it's Boeing, Honeywell, Continental Airlines, Virgin Atlantic, Air New Zealand.
Check these websites out as well:
http://www.algaefuels.org
http://www.oilgae.com/algae/oil/extract/extract.html
Everyone has blank areas in their knowledge, juxtaposed with areas of reasonable depth. From my job, I can definitely state that bio Jet-A from algae is becoming an intense focus within the aviation community. With respect to Peak Oil pain, we are ahead of the rest of the world by a substantial margin.