What's green and blue, eats CO2, and could wind up in your gas tank? If you answered heat-loving green blue algae (or thermophilic cyanobacteria, if you want to sound all smart and stuff), then ding! ding! ding!, you are correct! A pilot algae bioreactor project was just awarded a $375,000 grant by the Montana Department of Commerce and may, if it works out as hoped, pave the way for commercialization of the process.

GreenShift, a bio-fuel producing company, wants to use the CO2 emitted from corn ethanol production plants, along with concentrated sunlight and nutrient-rich water, to help grow massive quantities of a certain type of algae. The created biomass could then be used as a feedstock for different products; most notably, biodiesel. The company already operates a biodiesel plant in Michigan as well as several corn processing facilities. We're not sure if this will sooth the bruises suffered recently by ethanol but it can't hurt. Hit the jump to see the process explained in a short video.

[Source: Green Car Congress]

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