Biofuels are a growing biz in the Midwest, but the shaky CO2 argument for ethanol is threatening to plow things up. To combat this issue, the state of Iowa is working to make their cash cow corn ethanol a little more eco-kind with a $2.3 million grant in algae.

Green Plains Renewable Energy Inc., which operates a 50 million gallon corn ethanol plant in Shenandoah, Iowa, will use the funds to install the capability to grow algae using the facility's carbon dioxide. The plan is to conduct a 195-day test to research the viability of algae production at the plant, where the yield is expected to be 8 kilograms per day.

Green Plains' partner on the project is GreenFuel Technologies Corp., based in Cambridge, Massachusetts, which specializes in biofuel production from algae. The company believes that some of the advantages of algae include its ability to be grown year-round, fast growth, and its lack in dependence on clean water supplies.

"GreenFuel Technology has run several projects at major power plants in the United States," said Cary Bullock, Vice-President of Business Development for GreenFuel Technology. "However, we are especially excited about the Green Plains project because of the natural synergies between the algae and ethanol industries. The Green Plains project provides an opportunity to use an operational ethanol plant to further the body of knowledge of algae-based biofuels."

The project's partners say that oil from algae grows very efficiently, producing several thousand gallons per acre compared to about 65 gallons for an acre of soybeans. Still, I'm not sure even algae has enough green to make corn ethanol earthy. It might just end up getting kinda slimy.