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.

The U.S. Department of Energy (DOE) today announced a milestone in U.S.-Israel cooperation on clean energy technology. With financial support of DOE and the Israeli Ministry of National Infrastructures, the bilateral BIRD Foundation Energy Executive Committee has selected four cooperative clean energy projects in the United States and Israel. This initiative will award up to $3.3 million in U.S.-Israel funding for these four projects.

The AlwaysOn Network recently announced their Third Annual List of the GoingGreen 100 Top Private Companies of 2009. The award recognizes the top private greentech companies that are creating new business opportunities and transforming the world’s largest industries to improve sustainability.Among the hundreds of companies evaluated, They selected the Oakland California-based, Brightsource Energy, a provider of solar energy to utility companies, as the overall winner.

Last week, Secretary Chu announcen nearly $300 million in Clean Cities grants to support clean fuels, vehicles, and infrastructure development. The projects are designed to create jobs, limit pollution, and reduce America’s dependence on foreign oil.

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.

The Princeton Review, today released its second annual Green Ratings of colleges. In this measure of how environmentally friendly the institutions are on a scale of 60 to 99, the company tallied its Green Ratings for 697 institutions based on data it collected from the colleges in 2008-09 concerning their environmentally related policies, practices, and academic offerings. The Princeton Review also named 15 colleges to its “2010 Green Rating Honor Roll” – a list that salutes the institutions that received the highest possible score – 99 – in this year’s rating tallies.

In this first post of the BIOFUEL UPDATE — a newly introduced feature of The Green Economy Post — I write about how so called first generation Biofuels such as Corn Ethanol that are derived from food crops or grown on land that otherwise would be used for food crops may be worse for global warming than burning gasoline is! This reconfirms in my mind the pressing need for the biofuel sector to move towards non-food biofuel crops that also are grown on marginal land; crops such as algae, switchgrass, jatropha etc. In other news the Danforth Science Center in Saint Ls. MO gets $15 million in federal funds. Fedex announces plans to get 30% of its fuel from second generation non-food crop biofuels by 2030. OriginOil has developed a simpler and more efficient way to extract oil from algae.