Recent developments and prospects for algae-based fuels in the US

In recent years, algae-based fuels have received a growing interest of the industry sector and the US Government as a sustainable and renewable energy source. Algae constitute a unique feedstock as they contain high levels of both lipids and sugars and, thus, can be used for both biodiesel and ethanol production successively, in a two-stage process. In addition, the production of algae-based fuels shows a low environmental footprint and high energy efficiency. Algae can produce between 10 and 100 times more oil per acre as compared with traditional oil crops (e.g., oil palm) and can also grow 20–30 times faster than food crops. The production of algae does not compete with traditional crops for fresh water, high quality soil or fertilizers and, if cultivated off-shore, algae production does not require land resources at all. Furthermore, algae-based fuel is carbon-neutral, as algae assimilate similar amounts of CO2 for its growth as is released upon fuel combustion. From the policy perspective, algae-based fuels can provide a buffer for mitigating the food/feed vs. fuel problem in the long-term.