Lisa Stiffler at the PI is reporting that venture capital money funding algae-to-fuel is soaring.  "In 2007, $32 million in venture capital was pumped into businesses working on algae fuel. So far this year, that number has reached $184 million worldwide, according to Cleantech Network, which tracks environmental industries."

"In September, Bill Gates' Cascade Investment and three other companies gave a total of $100 million to Sapphire Energy, a San Diego company producing fuel from algae and other microorganisms.

"Boeing announced last week the creation of a coalition of aviation fuel users united to encourage the speedy development of algae fuel. The group is requiring that new aviation fuels be sustainable, meaning they produce less carbon dioxide, require minimal land, water and energy to produce, and don't compete for food production. Some terrestrial plants can meet those criteria, though their potential is more limited."

With oil consistently above $100/barrel, new businesses are building alliances with academics who have been working on algae power for years.  Two of the more prominent academics are local.  According to the PI,

"Dr. Rose Ann Cattolico, a University of Washington botanist and algae expert, is growing dozens of different kinds of algae at her UW lab to find the right ones for turning into different kinds of fuels that can power cars, trucks, airplanes and boats.      

Shulin Chen, a Washington State University biological engineering professor, has been approached as well.  

Some of what impresses investors is the flexibility of the growing conditions for various algae.  In addition, algae has the capacity to serve as fuel itself but also helps consume greenhouse gases as it is being produced. 

"They can reproduce and grow fast, produce more fats than other plants and can be grown in all kinds of conditions -- concrete pools, sewage ponds or plastic bags and containers. They don't require fertile farm ground or the clearcutting of forests.

"Corn and other plant-derived fuels can require significant amounts of energy and other resources to produce, contributing to global warming. But power plants can feed their carbon dioxide emissions into containers holding algae to boost their growth.

"Algae fuel is hailed not only for reducing the use of polluting fossil fuels, but also for helping consume greenhouse gases in its production."

Despite the funding and the interest, it is still too expensive to produce fuel from algae in the volumes that would make it competitive with petroleum-based fuels.  "Algae needs to be grown densely to yield enough fuel, but that means expending extra energy to mix the plants so they all get enough sunlight. It's tricky to harvest the algae from the water efficiently. Then the sturdy little cells must be cracked open either through mechanical means such as shaking or by chemically dissolving them in order to remove the fat for fuel."

Even assuming continued interest and funding, it is likely that it will take another 10 years until fuel can be produced from algae on an affordable, large scale.