PetroSun Inc. has been working on developing algae biodiesel production and they're now almost ready to start buliding a commercial-scale production facility. The company is cultivating algae paste, and they will be supplying it to companies that produce the refinery equipment for testing. Based on those test results, subsidiary Algae Biofuels will select an equipment supplier for their first biodiesel plant will may be built in either Arizona, New Mexico, California, Louisiana or Michigan. Initially they were planning to build in Arizona, but they are also evaluating algae cultivation in more northern states like Michigan. Growing the algae and producing the fuels close to where it will be consumed is essential to the model of minimizing distribution costs and environmental impact. Algae has much better potential as a biodiesel feedstock because of the cost of cultivation, the amount of CO2 it consumes, growth rate and potential yields. Plus it doesn't compete with food the way corn or soy does.

[Source: PetroSun via GreenCarCongress]

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