The Indian Oil Company became the fifth oil major to enter the algal fuel race, signing an agreement with PetroAlgae to license micro-crop technology aimed at producing biodiesel, according to Biofuels Digest in Miami.

The agreement also is the first between an oil major and an algal fuel developer aimed at commercializing the fuel.

The companies are planning to build a pilot plant that will eventually move to about 60 million gallons of biodiesel production.

The process also will produce a protein that can be used as feedstock for animal feed production.

(Biofuels Digest, Nov. 4, 2009)

(http://www.biofuelsdigest.com/…)

DTN: Milford Hanna, a professor in the Department of Food Science and Technology at the University of Nebraska-Lincoln, told DTN in an interview back in May that he has doubts about algae's future in biodiesel. "I don't believe we have a very good idea of where to even start," he said. The potential costs to build an algae oil production system vary significantly depending on the technology. Estimates run start at about $200,000 an acre to build above-ground photo reactors to house algae for oil production, Hanna said. "I'm skeptical that you can do it for $2 million an acre," he said. (Todd Neeley)