The cost of producing microalgal biodiesel can be reduced substantially by using a biorefinery-based production strategy, improving the capabilities of microalgae through genetic engineering and advances in engineering of photobioreactors (Chisti 2007). Genetic and metabolic engineering are likely to have the greatest impact on improving the economics of microalgal diesel production (Dunahay et al. 1995).

Algae offer the greatest promise of energy security for three reasons. Algae yield more than ten times as much oil per unit area as palm oil, the most productive land- based biofuel crop. Algae’s yield depends upon exactly what species is used and especially upon the oil content, by weight, of that species. Algae’s greater yield comes from basic biological differences from land plants and could be improved with research over time.

Algal oil is unlikely to be suitable for a standard refinery, meaning that either new refineries will need to be constructed or existing ones would need to be retrofitted to handle the different types of oil. Better processes for the conversion of algae into oil and the conversion of algal oil into usable fuel would make algae a far more efficient fuel source. Algae are unlike corn or soybeans in that there are not separate sowing and harvesting seasons. Their great yield is due to algae’s ability to reproduce far more quickly than any land plant, and productivity should remain consistent through all seasons.

Over 50 countries worldwide possess the appropriate temperature range (293 to 303 K) for year-round cultivation of algae across Central America, South Amer­

ica, Africa, and Southeast Asia and Oceania. Algal productivity depends upon a set of climatic conditions prevailing across most of the Earth’s equatorial region, and a monopoly or oligopoly over algae is very difficult to envision. Both coastal and inland states have unique advantages for cultivation, as coastal states possess direct access to salt water for algal culture as well as bays and coasts where algae could be cultivated using no land at all. Inland states fitting this temperature range typically have desert climates ideal for high-yield culture.

Algae can be cultivated in almost any area as long as it is flat, hot, sunny, and has access to salt water. It requires no arable land and no fresh water, and so will not compete for agricultural resources that are often scarce in areas best suited for algal growth. A quick survey of states suitable for algal culture reveals that almost all lie within the developing world and include some of the poorest countries on Earth. Many of these states suffer from poverty at least in part because they contain large swaths of arid, unfarmable land. Algae thrive in land that is too dry and too hot for conventional crops and can be grown in these climates without displacing food plots. Algal culture represents a significant opportunity for these developing states for several reasons.

Algae could provide these states with a cash crop that does not compete with subsidized crops grown in Europe and the USA. Powerful domestic agricultural lobbies represent a significant obstacle to large-scale import of agricultural products, particularly from the developing world, but feel less threatened when the product in question is mainly produced elsewhere for reasons of climate. Algae can be grown in salt water, adding no additional pressure to rivers and lakes already overdrawn by freshwater irrigation and reducing the number of minerals and nutrients that need to be added to culture media for growth.