The U.S. Department of Energy's National Renewable Energy Laboratory has entered into a research and development agreement with Chevron to identify and develop algae strains that can be economically harvested and processed into transportation fuels, such as jet fuel. Chevron Technology Ventures is funding the project.

Nonfood feedstock sources, such as algae and cellulose, can play an important role in biofuels production. The icky green stuff holds promising potential for biofuels because certain species of algae contain high amounts of oil - which can be extracted, processed and refined into transportation fuels. Algae is also abundant and grows fast.

Many companies are beginning to invest in algae research as an alternative to ethanol.