The UK launched a major initiative to commercialise the use of biofuels derived from algae feedstocks today (23rd October). The project, the Algae Biofuels Challenge, is being driven by the Carbon Trust, a company set up by the UK government, which is initially looking to commit between £3 - £6 million ($5 - $10 million) to fund the project. Other funding has been promised by the UK government through the Department of Transport.

The project is set up in two phases, where phase one will concentrate on the research across areas including selection of suitable microalgae algae strains for open pond production, maximising algae oil content and biomass yield, maximising solar conversion efficiency, sustained algae cultivation, and design and engineering of mass-culture systems. Phase two is expected to see the construction of an open pond test and demonstration plant. This plant will provide the vital facilities necessary to continue the research conducted in Phase One and demonstrate production at commercial scale in a manner that can be replicated.

Dr Mark Williamson, Innovations Director at the Carbon Trust, explains why public investment in algae as an alternative to fossil fuel based oil is vital: "We must find a cost-effective and sustainable alternative to oil for our cars and planes if we are to deliver the deep cuts in carbon emissions necessary to tackle climate change.  Algae could provide a significant part of the answer and represents a multi billion pound opportunity. Through the Algae Biofuels Challenge, we will be combining the UK's undoubted expertise in the area with our unique knowledge and experience of commercialising early stage low carbon technologies, to give us the best possible chance of successfully producing cost-competitive algal biofuel at scale."

Transport Minister, Andrew Adonis said: "Everyone agrees that to tackle climate change we must develop new and cleaner fuels. But we are clear that biofuels will only have a role to play in this if they are sustainably produced.

"This project demonstrates our commitment to ensuring that second generation biofuels are truly sustainable - and will further our understanding of the potential for microalgae to be refined for use in renewable transport fuel development, to help reduce carbon dioxide emissions.

"We launched a consultation last week on slowing down the rate of increase of the RTFO, fulfilling our commitment to proceed with caution following Professor Gallagher's report on the potential indirect impacts of biofuels."

To avoid any unnecessary delays in eventual commercialisation the plant is likely to be constructed overseas. This is because the majority of commercial production of algae biofuels is likely to take place in tropical and sub-tropical climates that have plentiful sunlight and temperatures that do not drop too low or vary too much.

Phase 1 of the Algae Biofuels Challenge opens today, 23rd October, with a call for proposals.  Applications can be made online at: http://www.carbontrust.co.uk/technology/directedresearch/algae.htm