How about a tank of microalgae Botryococcus?

The U.S. Department of Energy has announced an investment of as much as  $24 million of your tax dollars to three research groups to explore the commercialization of algae-based biofuels.

Despite algae’s potential, touted for 50  years, many technical and economic challenges must be overcome for algal biofuels to find their way into your tank.

Developing cost-effective renewable transportation fuels is said to be a key component of the Obama Administration’s strategy to cut greenhouse gas emissions and move the U.S. toward energy independence – a goal that goes all the way back to the Carter Administration and the aftermath of the fuel crisis of the 1970s. This latest program from DOE is actually a revival of one that was dropped by Democratic President Bill Clinton in 1996.

U.S. oil imports remain at more than 375 million barrels a month, close to the record of more than 400 million in spite of the ongoing Great Recession and failed Administration attempts to create jobs.

“The United States must find effective ways to hasten the development of technologies for advanced biofuels made from algae and other renewable resources to reduce our need for foreign sources of oil,” said Cathy Zoi, Assistant Secretary for Energy Efficiency and Renewable Energy.

Zoi made the announcement while speaking this week at the Biotechnology Industry Organization (BIO) 2010 World Congress on Industrial Biotechnology and Bioprocessing.

The promise of algal biofuel production is garnering renewed interest among entrepreneurs around the world, virtually all of whom are looking for government subsidies to pursue commercialization. Benefits include high per-acre productivity on otherwise non-productive farmland, and the use of a wide variety of water sources – fresh, brackish, saline, marine, and wastewater.

The basic concept of using algae as an alternative and renewable source of biomass feedstock for biofuels has been explored previously. However, no commercially viable program has thus far emerged.

The consortia consist of partners from academia, national laboratories, and private industries. Projects are expected to continue for three years, but there was no word if taxpayers would get an ownership stake in the technologies developed.

The three consortia selected for funding are:

• Sustainable Algal Biofuels Consortium (Mesa, AZ) – Led by Arizona State University, this consortium will focus on testing the acceptability of algal biofuels as replacements for petroleum-based fuels. Tasks include investigating biochemical conversion of algae to fuels and products, and analyzing physical chemistry properties of algal fuels and fuel intermediates. (DOE share: up to $6 million)
• Consortium for Algal Biofuels Commercialization (San Diego, CA) – Led by the University of California, San Diego, this consortium will concentrate on developing algae as a robust biofuels feedstock. Tasks include investigating new approaches for algal crop protection, algal nutrient utilization and recycling, and developing genetic tools. (DOE funding: up to $9 million)
• Cellana, LLC Consortium (Kailua-Kona, HI) – Led by Cellana, LLC, this consortium will examine large-scale production of fuels and feed from microalgae grown in seawater. Tasks include integrating new algal harvesting technologies with pilot-scale cultivation test beds, and developing marine microalgae as animal feed for the aquaculture industry. (DOE funding: up to $9 million)