Unlike other companies interested in algae-based fuel, AXI will not actually make the fuel itself but will liaise closely with biofuel producers to develop strains of algae that produce the right types of oil for different fuel applications. Algae can produce large amounts of biostock for conversion into fuel that could be an alternative energy source to petrol, and other biofuels that are based on cereals.

AXI was created as an alliance between the University of Washington and Allied Minds, a seed investment company that works with universities to commercialize early-stage technology. In particular, it was the work of Rose Ann Cattolico at the university, who has been studying the physiology of algae for more than 30 years, that interested Allied Minds.

Different types of algae, such as single-celled organisms or large kelps (seaweeds), will produce different lipids (or oils) depending on the conditions in which they are grown. This is because the plants produce varying numbers of carbon-carbon links under different growth conditions. Biodiesel, for example, requires lipids that have 14 carbon-carbon links and AXI says it will choose the best algae for each type of fuel application.

"Algae have many advantages over 'conventional' biofuels such as corn or soybeans," explained Erick Rabins, AXI's interim manager and vice president of Allied Minds. "No-one 'owns' algae and they do not need land to grow, so there will be no competition with land crops," he told environmentalresearchweb. Algae are also special in that they can grow in a variety of media, including wastewater.

The algae will be grown in bioreactors; about 600 to 1000 gallons of fuel might be produced per acre of "pond" water. Although relatively difficult to make at present, such biofuels will become easier to produce in the future, says Rabins, when technical problems like harvesting, extraction and separation have been solved. Producing algae-based biofuels is also an environmentally friendly and efficient process because the marine plants only need sunlight and carbon dioxide to grow and can double their body mass in a few hours.

It could take between three and 20 years before we see biofuels from algae on the market, says Rabins, but researchers are working now on the tools and techniques to make this happen.

Ultimately AXI hopes that algae biofuels will replace "unpopular" biofuels, such as those obtained from soybeans, sugarcane and corn.