I found a link roughly describing the process and the possibilities that Venter's process enables.
http://www.oilgae.com/blog/2010/06/can- ... fuels.html
Looks like currently algae are simply used to produce lots of lipids and oils which must be then extracted from the cell by mechancal means and separated from everything else.
I found this passage particularly interesting:
High costs of drying
Drying appears to be such an innocent little thing, you wouldn’t think its cost could amount to anything. You couldn’t be more wrong. Based on the calculations done by the Oilgae team, drying alone could cost upwards of $2 per gallon of algae biodiesel, if we use the traditionally used dryers such as spray dryers. It is likely that a more efficient drying system specifically adapted for making dry biomass for fuel could cost less, but even if one were to assume an 80% reduction, to $0.5 per gallon, the cost is still high!
Trust me, reducing the costs of drying could be a far more critical concern than what we all have assumed so far. Can genetic engineering play any role here?
Well, this was a toughie. I had almost given up trying to find a way where GM could play a role in more efficient drying when my colleague Parkavi Kumar pointed out to what OriginOil claims to be doing – bypassing the entire drying step (or for that matter, harvesting step), by extracting oil from the algae without killing the cells (
http://www.originoil.com/technology/liv ... ction.html ). Wouldn’t it be possible for genetic engineering to evolve algae that have cells less tough than normal so that such a “live extraction” becomes easier? Why not, I exclaimed, why not indeed – after all, we are talking about theoretical possibilities here!
This makes me wonder: if cells could be engineered (this is a technical site!) to continuously release hydrocarbons to the aquaeous medium... would those hydrocarbons spontaneously separate from the water? Then they could cheaply be skimmed from the surface in a relatively pure form, or maybe just distilled.
In most cases, the majority is below the average.