Australian energy company MBD Energy and American OriginOil Inc have announced the successful completion of a commercial pilot project for carbon sequestration and large-scale algae biofuel manufacturing in Australia.

CO2, given off as a byproduct of MBD Energy’s coal-fired power plants, is captured by micro-algae which use it to reproduce, creating more algae, which can then be used as biomass for fuel. That part of the process was developed by MBD Energy.

A process developed by OriginOil converts the algae biomass into oil for biofuel and concentrated algae biomass byproducts. These can be used for making plastics and other products.

The OriginOil process occurs in just one step in which the oil, water and algae biomass separate out over time, making it easier and more cost-effective to retrieve.

MBD Energy has agreements with three of Australia’s largest greenhouse gas emitting power stations, Loy Yang A (in Victoria); Eraring (in New South Wales) and Tarong (in Queensland), for the planning and provision of a pilot  carbon capture and recycling plant at each location.

As a result of the project’s success, MBD Energy will now begin adding algae production to these three power plants.