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The UK's Carbon Trust has selected a number of leading researchers to form a 'dream team' to find a world-beating formula for algae biofuel that could be used in global marine and land transport.

The new research project will bring together more than 70 leading scientists from 11 institutions, including the Universities of Manchester, Newcastle, and Southampton, the Plymouth Marine Laboratory and the Scottish Association for Marine Science.

In total, twelve UK teams will work together with the Carbon Trust to find the best formula for cultivating 70 billion litres of algae biofuel a year by 2030, which could be used by both the marine and land transport industries. According to estimates, it could provide a saving of over 160 million tonnes of CO2 every year.

They will work on a wide range of integrated projects designed to accelerate the development of commercially viable algae-based fuels, starting with work to screen thousands of different strains of algae to identify those that can deliver the greatest yields of oils that can be converted into biofuel.

They will also look at new techniques for converting algal oils into biofuels and undertake research into possible locations around the world that could be suitable for large scale plants, such as existing industrial facilities located near the sea.

A new coastal industry could be shaped around the production of algae biofuel. Algae crops could potentially be located next to industrial facilities by the sea as algae can exist quite happily on salt water without depleting fresh water reserves.

The Carbon Trust said that the three-year project would also involve the construction of a pilot demonstration plant in an equatorial region where algae are most productive.

The research group said the aim was to produce a genuinely sustainable algae-based biofuel that can deliver deep cuts in carbon emissions compared to conventional fossil fuels and be produced at a cost of less than US$1 (GBP 0.65) per litre.

Commenting on the project, Tom Delay, chief executive of the Carbon Trust, said "We have pulled together a dream team of more than 70 UK algae scientists who have the expert knowledge to turn algae into a British biofuel success story.

"Applying principles this country has developed from its proud agricultural heritage and leading bioscience expertise we will be developing a truly sustainable biofuel that could provide up to 80 per cent carbon savings."

The Carbon Trust is investing GBP 8 million over three years into the projects using funding from the Department for Transport (DfT) and the Department for Energy and Climate Change (DECC).