Written by Ariel Schwartz

The promise of commercial algae fuel is getting closer to reality with GreenFuel Technologies’ announcement today of a $92 million deal to build algae greenhouses. The project will capture CO2 emissions from a cement plant in Jerez, Spain and use it to grow algae for food, fuel, and feedstock.

Currently, GreenFuel and partner company Aurantia SA have a 100 square-meter prototype plant running. GreenFuel hopes to have a full-scale 100 hectare plant ready by 2011. The larger plant is expected to absorb 50,000 tons of metric carbon and produce 25,000 tons of algae each year. For some perspective, 25,000 tons of algae will produce 1.3 million gallons of algae oil annually.

The prototype plant began testing six weeks ago. If all goes well, GreenFuel wants to ramp up the project to 1,000 square meters.

I’m confident that the project will be successful—I just hope falling oil prices don’t discourage even more algae fuel investments.

Photo Credit: CNet

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• alternative fuel
• greenfuel