UK Sets Challenge for Algae Biofuel by 2020

The UK’s Carbon Trust, a publicly funded independent company, has launched the Algae Biofuel Challenge today. The project seeks to commercialize the use of algae biofuel by 2020. The Carbon Trust estimates the program will cost up to £30 million ($38.5$48.5 million) and will in part be funded by the Trust and the Department for Transport.

The two-phase project will initially focus on five key research and development problems — algae strain isolation, yield improvement, solar efficiency, sustained cultivation and mass culture system design. Today, the program is accepting applications for grants to further R&D in these areas. We know lots of algae biofuel startups who could probably pick up a few extra pounds for their research and help accelerate the commercialization of the entire sector. Pond scum entrepreneurs, check out the application here.

Phase 1 will dole out grants in the region of £500,000 to address the R&D focus areas. Participants will be selected by mid-2009 to move into phase 2 which will require up to £20 million in funding and 5 years of development. The second phase is focused on commercialization with the construction of a multi-million hectare demonstration plant for large-scale algae biofuel production. Carbon Trust says the plant will likely be located outside the UK in a tropical locale as algae grows best in warm, equatorial sun.

The Algae Biofuel Challenge is a complement to the Carbon Trust’s formerly announced Pyrolysis Challenge, which is granting up to £5 million to three organizations to produce low-carbon pyrolysis oil (bio-oil). Both challenges are part of the Trust’s Advanced Bioenergy Accelerator program, which is also working on research in photovoltaics and fuel cells.

Images courtesy of Sapphire Energy and Carbon Trust.