A commercial scale algae producer and a biodiesel maker ink a deal that will end up turning algae oil into biodiesel. Biodiesel Magazine reports Gulf Hydrocarbon will represent Algae International Group in sales and distribution of its algal oils and products created with the algal oils, including biodiesel, and precedes Algae International Group’s commercial production at its pilot facility located in Tulare, Calif.

Algae International Group advises that it will start the relationship with Gulf Hydrocarbon by shipping samples of proprietary and nonproprietary algal oils for testing as feedstocks for biodiesel. Jess Hewitt, chairman of Gulf Hydrocarbon, said, “Algae oils were approved by the U.S. EPA for use as a biodiesel feedstock in 2010 but we have yet to see the feedstock available. By shipping samples to the biodiesel producers, we can begin the process of registering the numerous production plants with the EPA.”

As a part of the agreement, Gulf Hydrocarbon will offer standard biodiesel reference fuels made using Algae International Group’s output from its pilot facility. “In order to satisfy the OEM’s requirements for engine and material compatibility, we must be able to supply a standard reference fuel before the engine manufacturers can certify use of the algal-based biodiesel in vehicle and nonroad engines,” Hewitt said. “Gulf Hydrocarbon will be responsible for quality control and packaging of these fuels for distribution to fuel laboratories and OEM testing facilities.”

Gulf Hydrocarbon will also represent Algae International Group’s excess biogas market.