Last month algae biofuel company Solazyme released an announcement that the Navy purchased 20,000 gallons of its algae-based fuel. The Department of Defense will buy 150,000 gallons of the biofuel by 2011, according to a contract.
Solazyme has funding from multiple investors. Morgan Stanley and the Chevron's venture-capital investors have made investments in the company, as well.
Algae have an exceptional capability to convert sugar to fats and oils. Solazyme decided the most efficient way to capitalize on this ability would be to use sugarcane or switchgrass to provide sugar to industrial fermentation vats supplied with algae that would then convert the sugar into oil.
Solazyme is working on generating algae strains that are best for producing diesel fuel, as well as other products. According to reports, Solazyme has garnered $75 million in venture capital and now a $21.8 million Department of Energy grant.
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