We’ve been proudly covering algae based diesel for a while on SWYE, but diesel has it’s limitations, mainly being a majority of the consumer vehicles in the US don’t run on it. By far the most promising source of fuel (forget ethanol, an inferior and wasteful alternative), algae based gasoline has been the holy grail for the internal combustion engine.

Based on their question, “Why is the biofuel industry spending so much time and energy focused on biodiesel and ethanol – fundamentally inferior solutions?” Sapphire Energy a company based in California, has found the solution and has produced 91-octane, ASTM certified gasoline, the same premium stuff you can find at your local gas pumps, and best of all, it’s vehicle ready and needs no modifications to the engine!

Sapphire Energy has developed a process by which they use sunlight, C02 and algae without using arable land to produce this green gold. The company has also raised $50 million from Arch Rock Ventures, Venrock, as well as the Welcome Trust.

Let’s hope this technology starts being used and we can take advantage of it soon. If it takes off, look out Shell, Mobil and Exxon, you might get left behind.

» Via CNET and Ecogeek.