Tiny, slimy East Coast algae could eventually be a viable form of fuel for everything from jets to diesel generators and power a new Canadian industry, research scientists said Friday.

Federal scientists and their private-sector partners said a $5-million National Research Council project in Nova Scotia that will test the creation of biofuels from the unicellular organism could help ignite a provincial energy industry.

"It's really cool," Gary Goodyear, the federal minister of science and technology, said during the funding announcement.

The algae — a microscopic version of the green slime that fouls pools and fish tanks — could be used in huge pools for absorption of carbon dioxide. And the chemical reaction of the carbon dioxide, water and organisms produces oxygen, sugars, proteins and plant oils that can be used in engines.

"Biofuels made from algae have the potential to deliver clean air, clean energy, clean water and also have clear economic benefits," said Goodyear.

Wider applications

Algae is already being used to produce biodiesel fuels in North America, but researchers at the National Research Council see wider applications in provinces such as Nova Scotia that rely heavily on coal-fired electricity plants.

Gerry Glazier, president of Carbon2Algae Inc., said he imagines a future where smokestacks from coal-burning power plants could infuse their carbon dioxide into huge containers of the hungry micro-organisms. His company has a method to inject the gas from fossil fuel plants into the algae.

Glazier said his company's early results show the algae infused with the greenhouse gases produce larger amounts of plant oils.

"We're pleased to see the way it's working," he said, gesturing at a jar of swirling, dark green organisms. "We've only done one test for oil and that was spectacular — the oil content increased by 75 per cent."

The entrepreneur said he sees the technology operating side by side with power plants and predicted the first production facility might be in Nova Scotia, if the algae tests in Ketch Harbour go well and funding is found

"We need partners. We need money. We're burning our own personal money at this point," he said, adding he's approached Nova Scotia Power Inc. to see whether they're interested in a pilot project.