ExxonMobil has launched a programme to research the use of algae in the creation of biofuels.

ExxonMobil has launched a new US$600 million (£366m) biofuels programme, in conjunction with biotech company Synthetic Genomics Inc. (SGI), to create biofuels from photosynthetic algae.

The algae – including microalgae and cyanobacteria (most commonly known as blue-green algae) – uses energy from the sun to convert carbon dioxide into both cellular oils (lipids) and hydrocarbons, which can then be processed into fuels and chemicals.

Dr. Emil Jacobs, Vice President of research and development of Exxon’s Research & Development division, explained the use of algae: “After considerable study, we have determined that the potential advantages and benefits of biofuel from algae could be significant. Among other advantages, readily available sunlight and carbon dioxide used to grow the photosynthetic algae could provide greenhouse gas mitigation benefits.

“Growing algae does not rely on fresh water and arable land otherwise used for food production. And lastly, algae have the potential to produce large volumes of oils that can be processed in existing refineries to manufacture fuels that are compatible with existing transportation technology and infrastructure.”

SGI will receive $300m for its research and development role within the programme, which is to cultivate the algae to ensure sufficient quantities are created to produce biofuel cost-effectively on a commercial scale. The company’s founder and CEO, J. Craig Venter, said: “We are confident that the combination of our respective expertise in science, research, engineering and scale-up should unlock the power of algae as biological energy producers in methods and scale not previously explored.”

ExxonMobil’s algae programme will be in addition to its other research activities over the past five years, during which it has invested more than $1.5 billion in systems to improve energy efficiency and reduce harmful emissions.

It is not the first company to research the use of algae in biofuel production. Royal Dutch Shell commenced a programme in Hawaii in 2007 to investigate the potential use of marine algae and vegetable oil in the creation of biofuels.