Algae is growing in Arizona and being used to absorb carbon dioxide at an electrical generating plant. If the future holds true to the plant's potential, then algae could be converted to fuel and replace up to one-third of the natural gas needed to power the plant. So far researchers are trying to find the best strand of the single-celled plant that is most effective. Algae ingests CO2 and releases oxygen, but it's also laden with oils that can be used to make biodiesel.
The project is backed by GreenFuel Technologies, which was started by Isaac Berzin of MIT. Challenges include keeping the growing algae on top of a moist surface and how to get CO2 into the moisture to spur maximum growth during daylight hours. The next step is to build a series of greenhouses 30 feet wide and 500 feet long to grow the algae.

[Source: Arizona Republic]

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