Here is a link that shows some promise in the algae biofuel industry. A contract of this size would mean great things for expanding biofuels made from algae into popular domain. If the product meets military specifications, it should do the trick for commuters.
Here is another interesting algae site that deals with algae growth on buildings. Lets see some of you engineers build and improve this process!
I actually have read this article before. DDGS is something that I know a fair bit about. It is actually mainly proteins, fiber, and lipids. In EVERY ethanol producing substance it is glucose (or glucose polymers) that get converted to ethanol from anaerobic fermentation by yeast. The fact that DDGS is a by-product is because all the glucose has been used up. I am not sure what this 'common' bacteria would be, but in theory it would need a nitrogen source (protein) and a carbon source (also protein). It obviously has been put under favorable conditions to make ethanol for energy, much like we do to yeast cells.
Probably not any microbiologists on this forum that would know what organism that could be…
EDIT: http://energy.einnews.com/news.php?wid=253107293 It appears that the retrofit will produce bio-butanol, which can still be directly blended with gasoline in current engines. Butanol is produced by Clostridium botulinum (the same organism that produces the most toxic substance on the planet). As far as what the conversion process entails, I am not sure. There are people in my lab working on it though.
EDIT 2: http://energy.einnews.com/news.php?wid=253131983 Apparently they have yeast producing bio-butanol. This is news to me and it would figure to be a genetically altered yeast.
oops, posted this in the wrong section:
Koel, I didn't know they could mix algae directly with fuel? I'm guessing that they are referring to algae derived bio-fuel, not pure algae?
The article is confusing and the first 3/4 I was unsure, but Saphire Energy makes algae BASED biofuels. The popularity is catching on and if high output fuels like jet fuel can be made from it, then this is a really great advancement.