Algae, during it’s energy cycle (photosynthesis, Calvin-Benson cycle, etc.) produces oxygen and biomass. That biomass can be further processed into fuels of various kinds, including biodiesel.
Note that it is often believed that the algae’s use of carbon dioxide in it’s photosynthesis will result in lowering atmospheric CO2. This is not exactly correct, as the carbon will be returned to the atmosphere by the use of the biofuel. However, note that the use of the biofuel instead of petroleum fuels would result in an overall decrease in atmospheric carbon.
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