NASA scientists from the Moffet Field laboratory in California have proposed an ingenious process to grow algal biofuels in the ocean enclosed within large floating bags made of a special semi-permeable clear plastic membrane. Growing algae in floating bags in the sea solves several major problems that are faced by current land based methods of algal biofuel production in an elegant low energy, low impact manner. This is the kind of out of the box thinking that is needed in order to grow the green economy. Now, in updated news NASA engineers and industry veterans have launched a company, Algae Systems, to commercialize the process.

A new study by the Marine Biological Lab (MBL) of Woods Hole Oceanographic Institution (WHOI) has reported that biofuels that displace food crops may have a much bigger carbon footprint than previously thought. MBL senior scientist Jerry Melillo and his colleagues at the MBL have reported that carbon emissions from land-use change caused by the displacement of food crops and pastures by a global biofuels program may be twice as much as the emissions from lands directly devoted to biofuels production.

U.S. Energy Secretary Steven Chu announced in Washington that the Department of Energy (DOE) will provide up to $750 million in new funding from the American Recovery and Reinvestment Act to help accelerate the development of renewable energy generation projects. This funding will be targeted to cover the cost of loan guarantees for renewable energy projects and could support as much as $4 to 8 billion in lending to eligible projects, and the Department will invite private sector participation to accelerate the financing of these renewable energy projects.

On August 11, the Financial Times reported on the promise of “synthetic biology,” including the development of algae that generates biofuels. In July, ExxonMobil entered into a $600 million venture with Synthetic Genomics, a firm founded by biotech pioneer Dr. Craig Venter. “Synthetic Genomics has already engineered strains of algae that secrete oil from their cells,” writes the FT’s Clive Cookson. Will oil companies transform themselves into algae companies? Or, a few years from now, could the makers of “Who Killed the Electric Car?” film a sequel about algae?

The excitement surrounding the biofuels market opportunity has been tempered somewhat by its many challenges, which include ethical questions of food versus fuel, limited availability of inexpensive feedstocks, petroleum price volatility, overcapacity of production and the global recession. However, a two recent reports from both Pike Research and Bio Economic Research Associates forecast that, despite these significant challenges, the combined biodiesel and ethanol markets will reach $247 billion in sales by 2020, up from just $76 billion in 2010. Total job creation, accounting for economic multiplier effects, could reach 123,000 in 2012, 383,000 in 2016, and 807,000 by 2022.

Algenol Biofuels, a Florida biofuels startup and DOW Chemical Company announced a pilot-scale algae-based integrated biorefinery that will convert CO2 into ethanol. The patented technology developed by Algenol Biofuels uses CO2, salt water, sunlight and non-arable land to produce ethanol, which can be used as a fuel or as a feedstock, replacing natural gas in the production of plastic. The algae is grown in long plastic covered troughs, called bioreactors that are filled with salt water that has been saturated with carbon dioxide gas, which provides the carbon the algae needs for photosynthesis.

The ABO is seeking individuals from companies, public and private institutions, academic research laboratories working in this area who would contribute novel and up-to-date information on all topics of algal biofuels and biomass production, including liquid transportation fuels, biofuels for electrical generation, higher value products, harvesting and processing, algal biotechnology and genetic research; engineering cost studies and life-cycle analyses, venture finance and outlook for structuring both pilot and industrial-scale algal production and processing projects.

Scientists are examining biomass – plant matter that’s grown and used to generate energy – as a potential power source. Two biomass technologies involve ethanol and electricity. Biomass converted into ethanol, a corn-based fuel, can power internal combustion vehicles. Biomass converted into electricity can fuel a vehicle powered by an electric battery. A study by University of California, Merced, Assistant Professor Elliott Campbell and two other researchers in the online edition of this week’s Science journal suggests that biomass used to generate electricity could be the more efficient solution.

US Department of Energy Secretary Chu announced plans to provide nearly $800 million from the American Recovery and Reinvestment Act targeted towards advancing biofuels research and development and for commercial-scale biorefinery demonstration projects. The $786.5 million in Recovery Act funding a mix of new funding opportunities and additional funding for existing projects, will be allocated over four main areas. Integrated pilot- and demonstration-scale biorefineries projects are to receive the bulk of the funding with the remainder going to commercial-scale biorefinery projects, fundamental research in key areas to advance cutting-edge conversion technologies, including generating more desirable catalysts, fuel-producing microbes, and feedstocks and to ethanol research.