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U.S. Awards $22.5 Million to Groups Developing Algae Biofuels

The U.S. Energy Department awarded about $22.5 million in grants to companies and researchers seeking to produce fuel from algae and other types of biomass.

The funding, which also went to projects in California and New Mexico, is part of the Energy Department’s effort to break down technical barriers and accelerate the development of sustainable, affordable algae biofuels.

It says that the projects should help boost the productivity of sustainable algae, while cutting capital and operating costs of commercial-scale production.

Hawaii BioEnergy LLC, Sapphire Energy Inc. and New Mexico State University each will receive $5 million to develop algae-based fuel technologies, according to a statement today on the department’s website.

California Polytechnic State University will get $1.5 million to develop more producive algae. FDC Enterprises Inc. will get about $6 million to improve processes for collecting and distributing wood, grass and agricultural waste that’s converted into fuel.

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