A Whitefish, Mont.,-based company called Algae Aqua-Culture Technology announced in a news release Wednesday that it received a $350,000 federal grant to develop a technology that uses algae from a greenhouse and wood waste to produce methane gas and fertilizer.

The grant comes from funds in the American Recovery and Reinvestment Act of 2009.

This company said in the release that it will use wood waste and algae in its process.

The AACT process uses a greenhouse-based algae growth system and an anaerobic digester to transform a blend of wood waste and algae into methane for power generation and organic ...