Algae fuel, also called algal fuel, oilgae,
algaeoleum or third generation biofuel, is a biofuel from algae.
Compared with second generation biofuels, algae are high-yield
high-cost (30 times more energy per acre than terrestrial crops)
feedstocks to produce biofuels. One biofuels company has claimed
that as the whole organism uses sunlight to produce lipids, or
oil, algae can produce more oil in an area the size of a two-car
garage than an entire football field of soybeans.
Though there are many factors to overcome for algae to be a widespread source of energy, several positive factors can already be considered. Algal fuels do not impact fresh water resources, and can use ocean and wastewater. The cost of various algae species is typically between US$5–10 per kg dry weight, with research actively looking to reduce capital and operating costs and make algae oil production commercially viable