Random Notes of Algal Fuels
The very high algal oil yields that you see some proponents suggest are all fictional. Nobody, anywhere, is making thousands of gallons of algal oil per acre. What people do is extrapolate best case lab results to thousands of acres, and then report those numbers – often as if they are actually achieving them. Or, they calculate best cases based on theoretical solar insolation. So it is best to treat those claims of high algal yields skeptically. As my friend John Benemann says, when you hear someone talk about yields like that, ask them how much oil they have for sale.
My conclusion is that with the possible exception of the fermentation approaches, the issues that caused NREL to abandon algae in the mid 1990’s are still pressing issues today. I see very little likelihood that companies basing their plans on either open pond systems or photobioreactors can be successful without heavy, perpetual doses of government funding.
Algae is still a lab project for the most part, and companies that have moved to commercialize it presently have little chance of economic viability. However, having said that, I think there are some niches in which it might eventually work, and I do favor spending research money in the hopes that in 10 or 15 years, commercialization is a realistic goal.