Algae feedstocks for alternative fuels production are not economically competitive with fossil fuels at the present time. Furthermore, it has not yet been demonstrated that algae production systems offer improved sustainability characteristics.
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Fast-growing, oil-producing species of microalgae have become the focus of attention for both biomass and biodiesel biofuels, but questions remain about scalability, economics, and the competition between large-scale microalgae cultivation and agriculture, with regard to water, fertilizer, and land use. By cultivating microalgae on domestic wastewater, the water and fertilizer problems can be overcome, and by using algae for improved wastewater treatment, economic and environmental benefits can be realized.