Several companies and government agencies are funding efforts to reduce capital and operating costs and make algae
fuel production commercially viable. Like fossil fuel, algae
fuel releases CO2 when burnt, but unlike fossil fuel, algae
fuel and other biofuels only release CO
2 recently removed from the
atmosphere via
photosynthesis as the algae or plant grew. The energy crisis and the world food crisis have ignited interest in algaculture (farming algae) for making
biodiesel and other biofuels using land unsuitable for agriculture. Among algal fuels' attractive characteristics are that they can be grown with minimal impact on fresh water resources, can be produced using saline and wastewater, have a high flash point, and are biodegradable and relatively harmless to the environment if spilled. Algae cost more per unit mass than other second-generation
biofuel crops due to high capital and operating costs, but are claimed to yield between 10 and 100 times more
fuel per unit area. The United States Department of Energy estimates that if algae
fuel replaced all the petroleum
fuel in the United States.
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