These new [algae biofuel] startups are developing strains of algae that continuously produce and actively secrete oils and ethanol. By turning the algae cells themselves into microscopic refineries, several process steps can be eliminated along with costs. Second, these startups are also hooking up with some big partners in industry to demonstrate that their technologies can be scaled to a size that matters.
Among those investing in algae biofuel are ExxonMobol, Dow Chemical, and several major airlines.
There are many people developing open source algae reactors and processing info on the web. Check out algaegeek.com as a great example. http://algaegeek.com