In Virginia, researchers at the University of Virginia have commenced three projects to improve yields from algae-to-fuel production. The first project will test for optimal levels of solid waste and carbon dioxide fed to the algae, with a target of improving yields by 40 percent. A second project will compare the economic and environmental benefits of algae biodiesel to soy. A third project will optimize oil extraction by testing different algae processing techniques, including grinding up of solid waste before feeding it to algae. The projects are funded by a U.Va. Collaborative Sustainable Energy Seed Grant.
They are studying how to use the by-products of industrial processes, CO2 especially - as would be generated from CoalTL - to make algal-based liquid fuel. Again, if the appropriate CTL process is selected, biomass can be added to the feed. You could have a circuit wherein by-products are processed to generate co-raw materials.