Syntroleum already has a plant in the works to do this, as long as bond issuance isn't held up by this crummy market. Their fuels have been tested and certified in flight by the USAF. An economically viable plant is due for construction ground breaking next quarter (q3 2008) and production in 2010 at 75 mil gal per year. Their partnership is with Tyson chicken and the current plan is to use chicken fat byproducts as the feedstock, but their refining processes are capable of using a large variety of feedstocks and it's likely that algae fatty acids would work well. The plant is a biodiesel plant, but that is most likely because there is a $1/gallon federal subsidy for biodiesel that makes the economics even more attractive. For the record, I own Syntroleum stock.