Global Green Solutions has agreed to fund ($2.5M) a pilot plant demonstrating an algae-based bioreactor system that converts captured CO2 to bio-fuel oil.

The Vertigro system, developed by Valcent Products, consists of a series of closely spaced vertical bio-reactors constructed of thin film membranes allowing high levels of light penetration. The membrane is configured for an optimum flow for the growth of algae. This system produces much higher algae growth rates than other systems, according to the company.
Valcent has extrapolated data from its test bed facility to conclude that production yields of up to 150,000 gallons (3,570 barrels) of bio-oil per acre per year are possible at a cost of about $20 per barrel. By comparison, soybeans yield about 68 gallons per acre and palm about 635 gallons per acre.

http://www.greencarcongress.com/2006...n_to.html#more

 

I really think biodiesel from algae is the way to go... long term. there was a unh study on this and how to convert the U.S over to it. pretty neat stuff.

http://www.unh.edu/p2/biodiesel/article_alge.html