If the technology is successful, SARDI says it could trigger a global revolution in biofuel production, providing a critical alternative to fossil fuels and help address greenhouse gas emissions.

Dr John Benemann, who has worked in the area of microalgae biofuels in the United States for more than30 years, has been appointed as a specialist advisor to the Future Fuels Consortium comprising the South Australian Research and Development Institute (SARDI), Flinders University, CSIRO and major project sponsor SANCON.

"Microalgae biofuels could become a significant alternative to fossil fuels, but we still must make a major effort to advance the technology to make algae biofuels technically practical and economically feasible," Dr Benemann said.

"Such renewable energy sources must be developed to allow for the long-term sustainability of our economies, ecosystems and societies - and the research in South Australia is making exciting progress."

Dr Benemann says SA has the potential to produce algal biodiesel feedstock but there are challenges in developing a sufficiently low-cost technology to produce microalgae biofuel economically, including stable cultivation at high productivity and harvesting.

By off-setting production costs with high value co-products such as nutraceuticals, and co-processes such as waste water treatment, the vision of algal biofuels could be realised in the nearer term, he said.

As an example of the potential of microalgae for biodiesel production, it has been estimated that only 400,000 hectares of land using seawater is required to replace Australia's current biodiesel needs, compared to 20 million hectares of canola growing on agricultural land and using freshwater resources.

* Dr Benemann will present a public seminar on tomorrow (Jan 21) at 3 pm at the SARDI Aquatic Sciences Centre in West Beach.