Sapphire Energy of San Diego announced in September that it had raised more than $100 million to bring its algae-derived "green crude" to market. Investors include Microsoft Chairman Bill Gates.The U.S. Energy Department, which got out of algae research in 1996, has jumped back in with a partnership between its National Renewable Energy Laboratory and Chevron to collaborate on algae-based fuels for jets and other uses.
"The real question that needs to be resolved," he said, "is can you do this at a commercial scale?" That answer, for now, is "no," Andrews said. Fuel from algae currently would cost consumers $18 to $30 per gallon, he said.
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