The nice thing about producing algae for fuel is that you can keep scaling up production, which helps drop the price.
Navy Takes Biofuels Campaign Into Uncharted Waters
Since 2006, the Defense Logistics Agency has procured more than 36 million gallons of ethanol-and-petroleum blends for the military. The Navy in September ordered an additional 150,000 gallons of algae-based fuel from San Francisco company Solazyme. The new agreement is seven times the size of the initial 20,000-gallon contract awarded last year. The Navy is paying big bucks for these fuels.
The service consumes an average of 1.2 billion gallons of petroleum each year at a cost of $3 billion about $2.50 per gallon. The service paid Solazyme $8.5 million to provide just 20,000 gallons of algae-based fuel $425 per gallon. At that rate, it would cost the Navy some $142.8 billion for the 8 million barrels of biofuel needed to meet its 2020 goal.
Camelina-based fuel is a bit cheaper but still more expensive than petroleum. In September 2009 the DLAs defense energy support center paid Montanas Sustainable Oils $2.7 million for 40,000 gallons of camelina-based fuel. That comes to about $67.50 per gallon.
Could someone smarter then me tell me “how much oil will be consumed to produce 1 gal. of Algae juice”?