Murdoch University, Western Australia, has received Aus$1.89 million in Federal government grant to support a new algae to fuel reserach project. The funding, from the Australian Department of the Environment, Water, Heritage and the Arts, will support a research project which will see 20 scientists develop and oversee large scale open ponds of algae growing in saline water in Australia, India and China. The project, explained the University, forms part of Australia's commitment to the Asia-Pacific Partnership on Clean Development and Climate.

At present the cost of producing biofuel from algae is too high," said Professor Michael Borowitzka, project leader at Murdoch University. "It costs Aus$12 a kilogram, but we need to bring that down to Aus$1 a kilogram using well adapted algae strains and improving all the production processes."

Professor Borowitzka has been working on finding elite strains of algae and developing applications for microalgae for 30 years and says the size of land required to produce fuel from algae was tiny compared to that needed for agricultural-based biofuels such as canola, sugarcane or corn. "For Australia to produce one per cent of biodiesel from algae you'd need a 100 square kilometre size plant – which is small compared to up to 2000 square kilometres required for the same amount to be produced from canola."

The Murdoch-led project will also investigate the anticipated low levels of carbon emissions produced in algae fuel production, and possible further energy generation from algae waste. The University of Adelaide, Parry Nutraceuticals in India and South China Institute of Technology are partnering Murdoch University in the research.