Technical Report

NREL/TP-6A2-48380

September 2010

Resource Evaluation and 

Site Selection for Microalgae 

Production in India

Anelia Milbrandt and Eric Jarvis
National Renewable Energy Laboratory

1617 Cole Boulevard, Golden, Colorado 80401-3393

303-275-3000 • www.nrel.gov

NREL is a national laboratory of the U.S. Department of Energy

Office of Energy Efficiency and Renewable Energy

Operated by the Alliance for Sustainable Energy, LLC

Contract No. DE-AC36-08-GO28308

Technical Report

NREL/TP-6A2-48380

September 2010

Resource Evaluation and 

Site Selection for Microalgae 

Production in India

Anelia Milbrandt and Eric Jarvis

Prepared under Task No. BB07.9610
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iii 

Acknowledgments 

The authors would like to thank the Department of Energy’s Office of Biomass Program for 

providing the financial support for this study. We also thank Dr. Al Darzins and Dr. Philip 

Pienkos from the National Renewable Energy Laboratory and Dr. H.L. Sharma from India’s 

Ministry of New and Renewable Energy for their review and recommendations. Thanks to the 

various Indian organizations cited throughout the document for creating and providing the data 

used in this study. 
iv 

Abbreviations and Acronyms 

CGWB Central Groundwater Board 

CO2 carbon dioxide 

CPCB Central Pollution Control Board 

FAO Food and Agriculture Organization 

GHG greenhouse gas 

GIS Geographic Information Systems 

MNRE Ministry of New and Renewable Energy 

MPNG Ministry of Petroleum and Natural Gas 

MRD Ministry of Rural Development 

MWR Ministry of Water Resources 

NRSA National Remote Sensing Agency 

PBRs photobioreactors 

R&D research and development 

STP sewage treatment plant 

TAGs triacylglycerols 

TDS total dissolved solids 

WSP waste stabilization ponds 

Units of Measure 

bbl barrel 

cm centimeter 

ft3 cubic feet 

g grams 

ha hectare 

km kilometer 

km3 cubic kilometer 

kWh kilowatt-hour 

L liter 

m meter 

m2 square meter 

m3 cubic meter 

mg milligram 

Mha million hectares 

MJ megajoule 

mm millimeter 

Mmcf million cubic feet 

Mt million tonnes 

tonne (t) metric ton 
v 

Executive Summary 

India’s growing demand for petroleum-based fuels associated with its growing economy and 

population presents challenges for the country’s energy security given that it imports most of its 

crude oil from unstable regions in the world. This and other considerations, such as opportunities 

for rural development and job creation, have led to a search for alternative, domestically 

produced fuel sources. Biofuels derived from algal oil show considerable promise as a potential 

major contributor to the displacement of petroleum-based fuels, given its many advantages 

including high per unit land area productivity compared to terrestrial oilseed crops, utilization of 

low-quality water sources and marginal lands, and the production of both biofuels and valuable 

co-products. 

The purpose of this study is to provide understanding of the resource potential in India for algae 

biofuels production and assist policymakers, investors, and industry developers in their future 

strategic decisions. To achieve this goal, the study integrates relevant resource data from various 

public and private institutions in India and uses state-of-the-art geographic information systems 

(GIS) technology to analyze the collected information and visualize the results. 

The results of this study indicate that India has very favorable conditions to support algae 

farming for biofuels production: considerable sunshine, generally warm climate, sources of CO2

and other nutrients, low-quality water, and marginal lands. Sustainable algae biofuels production 

implies that this technology would not put additional demand on freshwater supplies and use 

low-quality water such as brackish/saline groundwater, “co-produced water” associated with oil 

and natural gas extraction, agricultural drainage waters, and other wastewaters. Although 

information on the quantity of these water resources in India is not available, the intensity of 

activities associated with their production suggests that there is a vast potential in the country. 

Sustainable algae production also implies that farming facilities would not be located on valuable 

fertile agricultural lands but on marginal lands (classified as wastelands in India). These lands 

include degraded cropland and pasture/grazing land, degraded forest, industrial/mining 

wastelands, and sandy/rocky/bare areas. It is estimated that the extent of these lands in the 

country is about 55.27 Mha, or approximately 18% of the total land area. If India dedicates only 

10% (5.5 Mha) of its wasteland to algae production, it could yield between 22–55 Mt of algal oil, 

which would displace 45%–100% of current diesel consumption. The production of this amount 

of algae would consume about 169–423 Mt of CO2, which would offset 26%–67% of the current 

emissions. 

The study illustrates options for siting two algae production facility types: co-located facilities, 

which produce algal biomass as a consequence of another process, and dedicated facilities, with 

the main purpose of algae production. Co-located facilities are those operating in conjunction 

with wastewater treatment where algae are produced as a byproduct of the wastewater treatment 

process. Using the wastewater effluent as pond medium provides a cost-effective solution to 

water, land, and nutrients considerations because the wastewater treatment function would cover 

nearly all costs. Domestic and industrial wastewater treatment facilities were considered in the 

analysis as potential sites for co-locating algae farms. This opportunity exists in most states of 

India. 
vi 

The site-suitability analysis for dedicated algae farms was centered on the stationary industrial 

CO2 sources given key advantages of co-locating algae production with these facilities: 

supplying carbon for enhanced algal growth with low/no transportation costs and a means for 

capturing CO2 before it is released to the atmosphere, thus providing potential carbon credits for 

utilities. The study considered stationary CO2 sources in areas where these facilities coincide 

with other inputs necessary for algae growth or conditions that meet the engineering, economic, 

environmental, and social requirements for this technology. The results of this analysis indicate 

that suitable locations for dedicated algae farms are in the western and southern parts of the 

country and along coastal areas. 

India is a large country with diverse landscape and resources. Therefore, future work could focus 

on a state or even smaller geographic area to provide a more detailed examination of the resource 

potential for algae production and pinpoint the most suitable locations. The authors believe that 

the information provided in this study will serve as a base for further analysis of the algae 

biofuels potential in India and assist policymakers and industry developers in their strategic 

decisions.
vii 

Table of Contents 

List of Figures .......................................................................................................................................... viii 

List of Tables .............................................................................................................................................. ix 

Introduction ................................................................................................................................................. 1 

Biofuels from Microalgae: Opportunities and Challenges ..................................................................... 2 

Microalgae for Lipid Production ...............................................................................................2 

Benefits of Microalgal Oil Production .......................................................................................2 

Algal Cultivation Systems .........................................................................................................3 

Downstream Processing to Fuels ...............................................................................................4

Economics ..................................................................................................................................5 

Challenges to Overcome ............................................................................................................6 

Resource Evaluation ................................................................................................................................... 7 

Climate .......................................................................................................................................7 

Water Resources ......................................................................................................................13 

Carbon Dioxide and Other Nutrients .......................................................................................24 

Land .........................................................................................................................................26 

Site-Suitability Analysis ........................................................................................................................... 34 

Conclusions ............................................................................................................................................... 38 

References ................................................................................................................................................. 40 

Appendix .................................................................................................................................................... 44 
viii 

List of Figures 

Figure 1. Annual average solar radiation ........................................................................................ 8

Figure 2. Annual average daily sunshine hours .............................................................................. 9

Figure 3. India climate zones ........................................................................................................ 10

Figure 4. Annual average precipitation ......................................................................................... 11

Figure 5. Rainfall trends, 1813-2006 ............................................................................................ 12

Figure 6. Annual average evaporation .......................................................................................... 13

Figure 7. Surface water resources by river basin .......................................................................... 14

Figure 8. River flow patterns ........................................................................................................ 15

Figure 9. Groundwater resources by district ................................................................................. 16

Figure 10. Status of groundwater resources .................................................................................. 17

Figure 11. Groundwater level fluctuation ..................................................................................... 18

Figure 12. Brackish groundwater in India .................................................................................... 20

Figure 13. Oil and gas fields in India ............................................................................................ 21

Figure 14. Sources of domestic, industrial, and agricultural wastewater ..................................... 23

Figure 15 Carbon dioxide emissions from large stationary sources ............................................. 25

Figure 16. Nutrient sources for algae production ......................................................................... 26

Figure 17. Physical characteristics of land suitable for algae production ..................................... 28

Figure 18. Land use ....................................................................................................................... 29

Figure 19. Land area needed for algae production to displace states’ entire diesel consumption 32

Figure 20. Options for co-locating algae production with domestic and industrial wastewater 

treatment ..................................................................................................................... 35

Figure 21. Methodology for selecting suitable locations for dedicated algae farms .................... 36

Figure 22. Options for locating dedicated algae production facilities .......................................... 37

Figure 23. Monthly average solar radiation .................................................................................. 44

Figure 24. Monthly average daily sunshine hours ........................................................................ 45

Figure 25. Geothermal resources in India ..................................................................................... 46

Figure 26. Cyclone prone areas .................................................................................................... 47

Figure 27. Flood zones .................................................................................................................. 48

Figure 28. Wasteland in Andhra Pradesh ..................................................................................... 49

Figure 29. Wasteland in Arunachal Pradesh ................................................................................. 50

Figure 30. Wasteland in Assam .................................................................................................... 51

Figure 31. Wasteland in Bihar ...................................................................................................... 52

Figure 32. Wasteland in Chhatishgarh .......................................................................................... 53

Figure 33. Wasteland in Goa ........................................................................................................ 54

Figure 34. Wasteland in Gujarat ................................................................................................... 55

Figure 35. Wasteland in Haryana .................................................................................................. 56

Figure 36. Wasteland in Himachal Pradesh .................................................................................. 57

Figure 37. Wasteland in Jammu & Kashmir ................................................................................. 58

Figure 38. Wasteland in Jharkhand ............................................................................................... 59

Figure 39. Wasteland in Karnataka ............................................................................................... 60

Figure 40. Wasteland in Kerala .................................................................................................... 61

Figure 41. Wasteland in Madhya Pradesh .................................................................................... 62

Figure 42. Wasteland in Maharastra ............................................................................................. 63

Figure 43. Wasteland in Manipur ................................................................................................. 64
ix 

Figure 44. Wasteland in Meghalaya ............................................................................................. 65

Figure 45. Wasteland in Mizoram ................................................................................................ 66

Figure 46. Wasteland in Nagaland ................................................................................................ 67

Figure 47. Wasteland in Orissa ..................................................................................................... 68

Figure 48. Wasteland in Punjab .................................................................................................... 69

Figure 49. Wasteland in Rajasthan ............................................................................................... 70

Figure 50. Wasteland in Sikkim.................................................................................................... 71

Figure 51. Wasteland in Tamil Nadu ............................................................................................ 72

Figure 52. Wasteland in Tripura ................................................................................................... 73

Figure 53. Wasteland in Uttaranchal ............................................................................................ 74

Figure 54. Wasteland in Uttar Pradesh ......................................................................................... 75

Figure 55. Wasteland in West Bengal ........................................................................................... 76

Figure 56. Wasteland in Andaman and Nicobar Islands............................................................... 77

Figure 57. Wasteland in Delhi ...................................................................................................... 77

Figure 58. Wasteland in Dadra and Nagar Haveli ........................................................................ 78

Figure 59. Wasteland in Daman.................................................................................................... 78

List of Tables 

Table 1. Wasteland in India by State ........................................................................................... 30

Table 2. Land Area Needed for Algae Production to Displace States’ Entire Diesel 

Consumption .................................................................................................................. 33
1

Introduction

India’s growing demand for petroleum-based fuels associated with its growing economy and 

population presents challenges for the country’s energy security given that it imports most of its 

crude oil from unstable regions in the world. This and other considerations, such as opportunities 

for rural development and job creation, have led to a search for alternative, domestically 

produced fuel sources. Biomass-derived fuels, namely biodiesel and ethanol, are considered by 

the Indian government as one option to substitute petroleum-based products—diesel and 

gasoline, respectively. To promote the production and use of these fuels, the government 

announced a Biofuels Policy in December 2009 that calls for the blending of at least 20% 

biofuels with diesel and gasoline by 2017 (MNRE 2009). 

India is essentially a diesel-driven economy. Diesel consumption in 2008–2009 was 52 million 

tonnes (Mt)—about 40% of the total petroleum products consumed—against gasoline 

consumption of 11 Mt (MPNG 2009), and it grows by about 6%–8% annually. Diesel is widely 

used in all sectors—transportation, agriculture, power generation, and industry—but it is mainly 

consumed in road and rail transport (more than 50% of total diesel use). Biomass-based diesel 

substitutes include: biodiesel, typically produced by chemically reacting lipids (vegetable and

waste oils such as animal fat and used cooking oil) with an alcohol; green diesel, produced either 

from hydroprocessing lipids or indirect liquefaction of any biomass feedstock1

The purpose of this study is to provide understanding of the resource potential in India for algae 

biofuels production and assist policymakers, investors, and industry developers in their future 

strategic decisions. To achieve this goal, the following two project objectives were defined:

; and unmodified 

vegetable and waste oils, which may be used directly, without conversion, in diesel engines.

Feedstock for these fuels considered in India (except green diesel produced from indirect 

liquefaction, which could use any source of biomass) includes non-edible vegetable oils such as

those from Jatropha (Jatropha curcas) and Karanj (Pongamia pinnata) and waste oils. In 

addition, biofuels derived from algal oil show considerable promise as potential major 

contributors to the displacement of petroleum-based fuels, given the many advantages including

high per unit land area productivity compared to terrestrial oilseed crops, utilization of lowquality water sources (brackish, saline, and wastewater) and marginal lands, and the production 

of both biofuels and valuable co-products.

1. Examine the resources available for algae production in India.

2. Identify areas suitable for algae production in the country.

To accomplish these objectives, the study integrates relevant resource data from various public 

and private institutions in India and uses state-of-the-art geographic information systems (GIS) 

technology to analyze the collected information and visualize the results.

 1 Green diesel is chemically different from biodiesel. It is composed of hydrocarbons with chemical properties 

identical to petroleum diesel, while biodiesel is not a pure hydrocarbon, but rather a mixture of fatty acid methyl 

esters (FAMEs). One method for producing green diesel is through hydroprocessing, the process of reacting the lipid 

feedstock with hydrogen under high temperature and pressure. Another method is through indirect liquefaction: first, 

the biomass is converted to a syngas, a gaseous mixture rich in hydrogen and carbon monoxide; then, the syngas is 

catalytically converted to liquids. The production of liquids is accomplished using Fischer-Tropsch (FT) synthesis. 
2

Biofuels from Microalgae: Opportunities and Challenges

Microalgae for Lipid Production

The term “algae” refers to a very large group of photosynthetic, aquatic organisms that lack the 

true roots, stems, and leaves of higher plants. Eukaryotic algae are generally divided into the 

multicellular “macroalgae” (such as seaweeds) and the unicellular “microalgae.” Algae 

represent an enormous amount of biodiversity, with over 40,000 species characterized so far. 

These organisms are remarkably adaptable and occupy virtually every environment on the 

planet. They can be found in waters of widely varying temperature, pH, and salinity (from 

freshwater to hyper-saline). For some time it has been known that many species of microalgae 

have the ability to accumulate lipids in the form of triacylglycerols (TAGs). This oil can reach 

20%–60% of the dry cell weight and is typically synthesized in response to conditions of stress, 

such as lack of nitrogen. This response allows cells to store carbon and energy during times 

when cell division is limited. Of the 12 or more major divisions of algae, the best studied for this 

oil accumulation phenomenon fall into the Chlorophyceae (green algae) and Bacillariophyceae 

(diatoms).

The worldwide interest in exploiting oleaginous algae for their ability to make oil has reached a 

frenzied pace in recent years. However, the basic concept of growing algae for fuels has been 

around for more than 50 years (Meier 1955). Under the U.S. Department of Energy’s Aquatic 

Species Program, research in this area accelerated the field with over $25 million and 18 years 

spent isolating algal strains from the wild, characterizing their physiology and biochemistry, 

developing genetic systems, exploring downstream processes, demonstrating mass culture 

systems, and analyzing the economics and resource requirements. A comprehensive overview of 

the program was published (Sheehan et al. 1998). The conclusion from these studies was that the 

technology is extremely promising, but major advances will be required to make it a costeffective source of fuel, particularly given the fact that petroleum was trading for less than 

$20/barrel in 1995 when the program was winding down.

Benefits of Microalgal Oil Production

Why has the potential of producing fuels from microalgae been receiving so much attention in 

recent years? The answer lies both in externalities, such as recent escalations in the price of oil,

and the inherent attractiveness of the technology. Microalgae can be grown with minimal inputs: 

land, sunlight, water, some macro- and micro-nutrients, and carbon dioxide (CO2). The land need 

not be fertile, productive land; the ability to grow algae in wasteland regions means that the 

technology does not compete directly with food cropping. Similarly, low quality water is also 

applicable. Species of microalgae can be found that thrive in a wide range of salinities, thus 

brackish and saline water resources that are unsuitable for traditional crops will work well for 

microalgae cultivation. The requirements for macro- and micro-nutrients are similar to those of 

higher plants—nitrogen, phosphorous, and iron are key. Because these elements do not end up in 

the fuel product, there is the potential to recycle most of these nutrients in the process. Another 

avenue is the potential for domestic, industrial, and agricultural wastewater streams to be used as 

both water and nutrient sources for algal cultivation, which has the added benefit of remediating 

these waste streams. Finally, it is important to provide CO2 at elevated concentrations for 

productive growth. Algae can be grown using industrial CO2 streams, such as flue gas from 

electricity generation stations (typically 10%–15% CO2). Thus, there is the potential to provide 
3

the algae’s key nutrient (CO2) while capturing and recycling the primary gas responsible for 

global warming.

Given the right resources, microalgal oil productivities can be quite high. This is a result of their 

rapid growth rates (often > 1 doubling per day) and their potential for high oil content. Land and 

water resource limitations associated with using traditional oil crops, such as soybean or oil 

palm, prevent them from ever providing a large fraction of the world’s demand for diesel and 

aviation fuels. Microalgae, on the other hand, can be conservatively expected to produce two

times the oil yield per hectare of oil palm or 25 times the oil yield per hectare (ha) of soybean. 

This means that the land impact becomes reasonable for making a very significant contribution 

to the supply of hydrocarbon fuels. The oil (TAGs) from microalgae typically contains fatty 

acids that are very similar to those of conventional oil crops and can be converted readily to 

biodiesel or other fuels.

Compared to conventional petroleum-based fuels, the energetics and greenhouse gas (GHG) 

emissions associated with the production of microalgal fuels have the potential to be very 

attractive. The ultimate source of energy in these fuels is the sun, captured by the photosynthetic 

machinery of the algal cells. The carbon in the fuels is captured from waste streams, such as 

power plant flue gas; thus, a second use of this carbon is achieved before release to the 

atmosphere. Early life cycle analysis (LCA) studies, however, indicate that the overall energy

and GHG balance is very sensitive to the design of the process (e.g., Huesemann and Benemann 

2008; Lardon et al. 2009). Since an active industry producing microalgal biofuels does not yet 

exist, it is difficult to know the appropriate inputs and assumptions to use in such LCA modeling. 

The source of key nutrients and the need for drying algal biomass before oil extraction are 

particularly important determinants of the LCA results. Utilization of wastewater can improve 

the LCA, as can methods of extraction that do not require drying the biomass. These and other 

factors must be carefully considered before any large-scale implementation of the technology.

Algal Cultivation Systems

Microalgae can be cultivated in any system that provides the right environment for growth, 

including sufficient light, gas exchange (CO2 delivery and O2 removal), temperature control, and 

mixing. The ultimate goal is to optimize all of these parameters so as to approach the theoretical 

efficiency of energy capture through photosynthesis, which is difficult in practice. Balanced 

against providing the ideal growth environment is the system cost, which must be kept to a 

minimum. Proposed growth systems vary from simple open ponds to complex photobioreactors 

(PBRs). Growth systems are currently an area of active research worldwide.

Open ponds are the most cost-effective algal growth systems. Unstirred ponds tend to have very 

low productivity rates. Raceway designs, however, which use paddlewheels to provide laminar 

flow of the culture and keep the algae suspended, can be very productive. These shallow, 

artificial ponds are typically 15–30 cm deep and can be lined with clay or plastic to prevent 

percolation through the bottom. CO2 is generally sparged into the culture in a deeper section 

known as the sump. These systems scale up very well and have the advantage of less severe 

temperature swings due to good thermal contact with the ground and evaporative cooling from 

the surface.
4

There are many designs for PBR growth systems, the most common of which fall into the 

categories of flat panel, tubular, and vertical column systems (for reviews, see Richmond 2004; 

Chisti 2007; Eriksen 2008; Ugwu et al. 2007). By optimizing the surface-to-volume ratios, PBRs 

can offer higher volumetric productivities than ponds, but not necessarily higher areal 

productivities. They have the potential for better culture stability due to decreased risk of 

contamination, although at large scale it is impossible to keep such systems axenic. Water 

consumption can be reduced relative to open ponds due to decreased evaporation, unless 

evaporative cooling needs to be employed for temperature control. PBRs suffer from the 

complexities of gas exchange (CO2 introduction and O2 removal), mixing, temperature control, 

and prevention of fouling (biofilm formation). But even more critical is the capital costs of such 

systems because of their complexity and the expensive materials used for construction (e.g., 

steel, glass, and plastic). Some authors have predicted that the increased performance of PBRs 

will never compensate for the added economic and life cycle costs of such systems (Huesemann 

and Benemann 2008; Sheehan et al. 1998).

Hybrid systems have also been proposed in which a combination of open ponds and PBRs are 

used to optimize growth and lipid induction. Heterotrophic growth, in which algae are fed 

biomass-derived sugars, is also an option; however, this approach relies on agricultural 

feedstocks that have other uses. Artificial light systems have been proposed, allowing better 

control of temperature and sterility, but such concepts are clearly not feasible due to energy and 

cost considerations. Finally, offshore cultivation is an option to consider, although reliable 

infrastructure for such systems has not yet been devised. For the purposes of this paper we will 

consider only land-based, phototrophic systems.

Downstream Processing to Fuels

Productive growth of oil-rich algae is only half of the equation. Equally important is the 

harvesting of the algal biomass, extraction and purification of the oil (TAGs), and conversion to 

usable transportation fuel. All three steps are important to the overall economics and the subject 

of ongoing research.

Microalgal harvesting, or “de-watering,” has the potential to be a very cost- and energy-intensive 

process. Even a “dense” algal culture may only contain 1 g of dry cell weight per liter of culture 

(i.e., 0.1% solids). A 1 hectare, 20 cm deep open pond would contain 2,000 m3 (2x106 liters) of 

culture, and it may be necessary to harvest half of the pond volume (1 million liters) every day. 

The harvesting system must therefore be rapid and efficient. Some of the options being 

considered include spontaneous settling of the cells, autoflocculation, bioflocculation, chemical 

flocculation, centrifugation, filtration, and dissolved air flotation. In reality, harvesting will likely 

include a combination of such techniques, such as using flocculation to achieve 1%–2% solids, 

followed by centrifugation or tangential flow filtration to achieve 20% + solids. Many of these 

methods are somewhat strain-dependent, and more research is needed in this area.

The TAGs in microalgal cells are contained in oil droplets within the cells, and the cell wall can 

pose a significant barrier to removal of the oil. Extraction of algal oil probably involves three 

steps: 1) disruption of the cell wall, 2) separation of the oil from the remaining biomass, and 3) 

purification or upgrading of the oil to remove impurities. Many approaches to extraction are 

being studied. Solvent extraction, using hexane, for example, can be used successfully to extract 

oil from intact cells of many species, and the algal biomass need not be fully dried. Drying the 
5

algae is extremely energy intensive and must be avoided if possible; ideally a technique will be 

able to deal with an aqueous slurry or paste (e.g., 20% solids). Solvent extraction, however, can 

be costly and pose serious environmental concerns. Other approaches being studied involve more 

benign (“green”) solvents, supercritical CO2, enzymatic extraction, and ultrasonic cell disruption, 

among others. Again, methods can be very strain-specific, and much more research is needed to 

find inexpensive, safe, and scaleable methods for oil extraction.

Finally, the extracted TAGs need to be converted into a fuel that is compatible with the existing 

transportation infrastructure. This means converting the oil into diesel or aviation fuel substitutes 

that meet all of the relevant specifications for fuel quality. Two main pathways are being 

considered. The first is the conversion of the TAGs into alcohol esters (i.e., biodiesel) using 

conventional transesterification technology. The second is to use catalytic hydroprocessing 

methods to generate a renewable “green” diesel product which does not contain oxygen. Both 

approaches have their merits and are based on well-understood processes. The hydroprocessing 

approach, which essentially uses conventional oil refinery operations, has the benefits of more 

process flexibility and the ability to address aviation fuel markets as well as diesel. The chosen 

process must also be able to deal with variability in the oil feedstock, as the fatty acid 

composition of oils can vary based on algal species and growth conditions.

Economics

The technical feasibility of algal biofuels has been demonstrated. The challenge comes in making 

the system cost-competitive with other fuel sources. While government incentives and 

monetization of externalities (e.g., environmental benefits) can help to give this nascent 

technology a boost, becoming directly competitive with the cost of petroleum-derived fuels is the 

best way to ensure growth of an algal biofuels industry. Unfortunately, current estimates of the 

cost of algal-derived biofuels vary over two orders of magnitude, depending upon how optimistic 

the assumptions are. Until large-scale facilities are operational and we have a better 

understanding of the performance and production costs, it is difficult to make accurate 

assumptions in cost models. Probably the most important determinant of the economics is the 

biological productivity, that is, using a productive strain of microalgae and optimizing the 

growth system (Sheehan et al. 1998). However, other factors such as the cost of CO2 and water 

and the harvesting and extraction systems also play important roles. Other inputs, such as the 

cost of land, are somewhat less significant.

One of the major areas of uncertainty in the cost modeling is the value to be gained from coproducts. Even if cells are 50% oil, it means that the residual biomass comprises another 50% of 

the mass. This is at worst a disposal issue and at best a revenue opportunity of even more value 

than the oil itself. Most microalgal cells are quite high in protein, which has potential 

applicability to food and feed markets. Residual carbohydrates can also have feed value or could 

be fermented to ethanol as a gasoline substitute. Anaerobic digestion of the entire residual 

biomass could produce biogas for heating and power generation. Higher value products can also 

be found in many species of algae, including pigments (e.g., carotenoids and astaxanthin) and 

specialty lipids (e.g., omega-3 fatty acids). Co-products are critical to the overall economic

viability of algal biofuels, and care must be taken to match the size of the co-product market to 

the projected size of algal fuel production facilities.
6

Challenges to Overcome

Despite the promise of algal biofuels, sustained yields obtained so far for algal mass culture 

efforts have fallen significantly short of the levels required for cost-effective fuel production (Hu 

et al. 2008). Further strain improvement and culture optimization may allow the necessary yields 

to be achieved. However, there are challenges throughout the process chain that need to be 

addressed. 

Large-scale cultivation of microalgae is still in its infancy. First, robust, highly productive strains 

must be identified that exhibit consistently both high growth rates and high oil content. The 

stability of cultures is critical, as culture “crashes” will take a severe toll on overall productivity. 

Stability will be affected by invasion of weed algal species, pathogens (e.g., viruses and fungi),

and predators/grazers that feed on microalgae. CO2 supply, gas exchange, and temperature 

control could be problematic in many situations. Nutrient sourcing and recycle can be critical to 

the economics. The overall cost of cultivation systems, especially the capital infrastructure costs, 

must also be reduced.

The downstream processes also pose significant challenges. As discussed above, the harvesting 

and extraction of algal cells are critical cost components for which economically viable solutions 

may not yet exist. The characteristics, stability, and consistency of the final fuel product need to 

be addressed. Finally, the management of water throughout the process is of paramount 

importance, particularly in arid regions. This includes sourcing water for cultivation systems, 

makeup water to replace losses due to evaporation, and treatment of incoming and outgoing 

water streams (e.g., removing nutrient residues, organics, heavy metals, salt, and live organisms).

Of course, the regulatory requirements, environmental impacts, and life cycle benefits of the 

entire process must also be carefully considered.

It is clear that one of the keys to the success of this industry is to align the necessary resources at 

the required costs. The benefits of the technology will not be realized unless the process can be 

made economical and the overall benefits shown to be beyond dispute. Although demonstration 

and pilot studies are now beginning, the only way this technology will have an impact on 

providing transportation fuels in a sustainable and cost-effective manner is for the required 

resources to be available to cultivate microalgae on a truly massive scale. For that reason, siting 

and resource issues are at the fore. India’s capacity to provide those resources for a large-scale 

and sustainable algae-to-biofuels industry is the focus of this paper.
7

Resource Evaluation

The decision for locating an algae production facility in a given area, as with many other 

technologies, starts with evaluating the resource potential. Favorable climate conditions and

availability of water, CO2, and other nutrients (primarily nitrogen and phosphorous) must be 

aligned with suitable land characteristics—topography, soil, and use—to determine the most 

promising areas for algae production. Because these resources vary considerably from one 

geographic location to another, optimal siting of algae farming systems requires knowledge of 

the specific resource characteristics—availability, magnitude, and variability—at any given 

location. An overview of the critical resources for algae production systems in India—climate, 

water, CO2, other nutrients, and land is presented below.

Climate

The impact of climate on algae production is comparable to the impact of climate on terrestrial

plants. Like higher plants, algae need abundant sunlight and have differing tolerances to 

temperature. Closed photobioreactors can be less sensitive to climate variability than open pond 

systems due to the somewhat more controlled environment they provide. Solar radiation and the 

number of daily sunshine hours directly affect algae productivity, precipitation and evaporation 

affect water supply, and severe weather (hail, dust storms, and floods) impacts water quality.

Equally important to both open and closed algae cultivation systems is the availability of 

abundant sunlight. Figure 1 illustrates the annual average global horizontal solar radiation in 

India. Global solar radiation is the sum of the direct, diffuse, and ground-reflected radiation 

arriving at the earth’s surface, also called total solar radiation. Direct beam radiation comes in a 

direct line from the sun; diffuse radiation is scattered out of the direct beam by molecules, 

aerosols, and clouds; ground-reflected is the solar radiation reflected back into the atmosphere 

after striking the earth. Solar radiation of 4.0 kWh/m2/day (approximately 14MJ/m2) is 

considered adequate for algae production. Therefore, almost the entire country (except parts of

Arunachal Pradesh) is suitable for algae production from the standpoint of receiving sufficient 

solar radiation on an annual basis. There are, however, monthly variations as illustrated in Figure 

23 (Appendix). Lower solar radiation values are experienced during the monsoon season in the 

central, northeastern, and western coastal states and during the post-monsoon season/early winter 

in the northern states. Algae productivity in those locations would be low during these months. 
8

Figure 1. Annual average solar radiation

Another important climate element affecting algae growth is the number of sunshine hours 

during the day. In most parts of India, clear sunny weather is experienced 250 to 300 days per

year with the sunshine hours ranging between 2,300 and 3,200 per year depending upon the 

location (Muneer, Asif, and Munawwar 2004). Figure 2 illustrates the annual average daily 

sunshine hours in India. The values vary from less than five hours for locations in the 

northeastern states to more than nine hours for places in the western and central states. 
9

Figure 2. Annual average daily sunshine hours

The India Meteorological Department (IMD 2009) designates four official seasons: winter 

(January through March), summer or pre-monsoon season (April through mid-June), monsoon 

season (mid-June through September), and post-monsoon season (October through December). 

On average, the lowest number of daily sunshine hours is experienced during the monsoon 

months—for some locations less than four hours. During the other seasons, the sunshine hours 

are high (more than eight hours) for most of the country. The monthly variations are shown in 

Figure 24 (Appendix). Days with less than six hours of sunshine are considered inadequate for 

algae growth; therefore, productivity would be low during the rainy season in some areas of the 

country. Although algae productivity would be low at these locations during the monsoon 

months, the remaining 8 to 9 months of the calendar year provide a sufficiently long growing 

period for algae. 

The various species of microalgae grow under a wide range of temperatures; thus, temperature 

per se is not a critical climate element. However, most algae species are sensitive to freezing;

therefore, areas reaching 0°C (32°F) and below in the winter months would be challenging

locations for algae farming. Thermal mass of the cultivation system and high salinity growth 

medium might protect microalgae during temperature excursions below 0°C, but productivity 

would be negligible under such conditions. Areas prone to freezing weather include the mountain 

areas in Northern India: the states of Jammu and Kashmir, Himachal Pradesh, Uttaranchal, 
10

Sikkim, and Arunachal Pradesh (Figure 3). Portions of these states, at the sub-Himalayan and 

sea-level elevation, generally experience subtropical climate with mild winters, but temperatures 

even in these areas may fall to 0°C during the coldest months. Similarly, temperatures in some 

areas of western Rajasthan can drop below freezing due to waves of cold air from central Asia

during winters. If algae farming is considered in these areas, the facilities may need to be 

equipped with a heating mechanism to keep the ponds at an optimal temperature for algae 

growth. This, however, would add substantially to the farms’ operating costs and defeat the 

purpose of algal fuels production, which is to reduce GHG emissions, if fossil fuel sources are

used. Alternative sources of energy could be considered to improve the environmental impact of 

these facilities, such as geothermal resources (available in areas with cold temperatures as shown 

in Figure 25; Appendix), but this approach may not be cost competitive. Geothermal resources

are being researched in the United States as a heat source for algae farms, particularly in Nevada 

(a state with wide local temperature variations), but the cost of this method is yet to be evaluated.

Another option is to consider waste heat from power plants and other CO2 emitting industrial 

facilities.

Figure 3. India climate zones

As mentioned earlier, precipitation and evaporation do not affect algae productivity directly. 

However, they are important climate elements to consider in siting algae farms as they relate to 
11

water supply and loss. Precipitation affects water availability (surface and groundwater) at a 

given location. The IMD estimates the annual average rainfall in India during 2000–2005 at 

1,117 mm (Hindustan Times 2005). More than 75% of the rainfall is received during the four 

monsoon months (Harihara Ayyar 1972). Of the remaining volume, a large fraction is received 

during the winter months. Areas with sufficient precipitation (more than 1,000 mm/year) include 

northeastern states, western Ghats, central states, and the eastern part of Ganges Valley (Figure 

4). A recent study by the Indian Tropical Meteorology Institute in Pune looked at data from 1871

to 2006 and concluded that the rainfall patterns in the country are changing: rainfall is decreasing

along the Ganges Valley and in the northeastern states (Figure 5; Singh et al. 2005). Rainfall is

increasing in West Bengal, Jharkhand, Assam, parts of Gujarat (historically dry), and most

coastal regions of the country. The observed rainfall trends will affect water abundance/deficit in 

those regions; therefore, it will have an impact on the water available for algae production.

Figure 4. Annual average precipitation
12

Figure 5. Rainfall trends, 1813–2006

Evaporation contributes to water loss. It is a very important factor to consider when choosing 

locations for open pond farming because it can significantly increase operating costs. This is less 

of an issue for closed PBRs, although evaporation is necessary to help regulate the temperature 

of both open and closed systems. The western, central (Maharashtra), and southern (Tamil Nadu)

states in India have the highest evaporation rates in the country with more than 275 cm annually

(Figure 6). Evaporation rates follow closely climatic seasons: they are low during the winter (2–6 

mm/day), monsoon (4–10 mm/day), and post-monsoon (4–8 mm/day) months and reach their 

peak in the summer months of April and May (5–16 mm/day) (NIH 2009). Saline water surfaces 

evaporate less than freshwater surfaces. Therefore, algae ponds using brackish or saline water 

should be considered in areas where the evaporation rates are high.

Severe weather can have a major impact on aquaculture. In India, natural disasters that could be 

devastating to algae farming include cyclones along the coastal areas, hail and dust storms in 

northern states, widespread floods along the rivers, and flash floods during the monsoon season

(Figure 26 and Figure 27; Appendix). These weather events could contaminate the open pond 

environment or damage covered systems; therefore, the potential for such natural disasters

should be taken into account when looking at prospective sites for algae production in India.
13

Figure 6. Annual average evaporation

Water Resources

The renewable water resources in India are estimated at 1,869 km3 annually (MWR 2009). The 

country ranks ninth in the world; in comparison, Brazil has more than 8,000 km3, Russia has

4,500 km3

, and Canada and the United States have more than 3,000 km3 each (CIA 2009). Due to 

topographic, hydrological, technological, and other constraints, however, the amount of water 

that can actually be utilized in India is less—about 1,123 km3

. Of this amount, surface water 

represents 61% or 690 km3, and groundwater is about 433 km3; although, considering natural 

discharge during non-monsoon season, groundwater availability is actually closer to 399 

km3

/year.

India has more than 20 major river systems providing irrigation, drinking water, transportation, 

electricity, and the livelihoods for many people all over the country as illustrated in Figure 7. The 

rivers of India are broadly classified into four groups: Himalayan rivers, Deccan rivers, coastal

rivers, and rivers of the inland drainage basin. Some of these rivers are perennial and others 
14

seasonal (Figure 8). The Himalayan rivers—Ganges, Brahmaputra, and Indus—are formed by 

melting snow and glaciers, and therefore, continuously flow throughout the year. Together, these 

river basins provide about 50% of the surface water resources in the country (Kumar et al. 2005). 

Most of the Deccan rivers (e.g., Godavari, Krishna, Cauvery, Mahanadi, Narmada, and Tapti) 

and coastal rivers are seasonal; their flow depends mainly on rainfall. Therefore, adequate rain 

during the monsoon season is critical in these parts of the country for a lack of it leads to water 

shortage. The streams of inland drainage basins are small rivers in sandy areas of Rajasthan with 

no outlet to the sea, except Luni, and most of them are of an ephemeral character.

Figure 7. Surface water resources by river basin
15

Figure 8. River flow patterns

In addition to surface water, groundwater is also an important resource for irrigation, domestic,

and industrial uses in India. It is a strategic source of freshwater during dry periods. It accounts 

for about 80% of domestic water use and more than 45% of the irrigation in the country (Kumar 

et al. 2005). Figure 9 illustrates the groundwater resources in the country by district. Districts 

along the main rivers in the north and in the southern states of Andhra Pradesh and Maharashtra

have the highest volume of groundwater resources. 
16

Figure 9. Groundwater resources by district

Groundwater in India is recharged by rainfall (67%) and other sources (canal seepage, return 

flow from irrigation, seepage from water bodies, and artificial recharge due to water 

conservation structures). In some areas of the country, groundwater levels have been declining

over the past years. This is due to a number of factors—decreased rainfall, deforestation, and soil 

degradation—but is particularly due to overexploitation resulting from population growth, 

economic development, and water-intensive farming. The Central Ground Water Board (CGWB)

of the Ministry of Water Resources (MWR) evaluated the groundwater resources at the finest 

administrative unit (blocks, talukas, and mandals) and categorized them into several groups as 

illustrated in Figure 10 (CGWB 2006a). Groundwater in about 20% of all administrative units—

predominantly in the northwestern, western, and southern parts of India—is categorized as 

“overexploited” and “critical.” Approximately 10% of all units have groundwater that is 

categorized as “semi-critical” and about to reach critical condition if proper management of these

resources doesn’t take place. Scientists from the U.S. National Aerospace and Space 
17

Administration (NASA) studied satellite images of groundwater storage from 2002 to 2008 in 

north India and found that the groundwater levels in north India are declining by 33 cm per year

and that about 110 km3 of groundwater have been lost over the six-year study period—double 

the capacity of India's largest surface water reservoir, the Upper Wainganga (NASA 2009).

Figure 10. Status of groundwater resources 

Overexploitation of groundwater resources, more so than climate variations and land use change,

causes a lowering of the water table, which makes the groundwater more difficult and expensive 

to obtain. In many parts of India, groundwater is increasingly being pumped from lower and 

lower levels. In some areas, well drillers are using modified oil-drilling technology to reach 

water, going as deep as 1,000 m (Brown 2007). Groundwater level fluctuations (the rise and fall 

of the water table) over a decade are shown in Figure 11. The areas where the water table is 

falling overlap with highly populated places and locations with groundwater overexploitation. 
18

Because depth to water table greatly affects the cost of extraction, this will negatively impact the 

economics of growing algae in those areas. Naturally, locations with groundwater closer to the 

surface would provide a cost effective way to produce algae. It is critical that the emerging algae 

industry be wary of regions where added consumption will exacerbate already serious water 

resource issues.

Figure 11. Groundwater level fluctuation

One of the benefits of growing algae is that it can utilize low-quality water with few competing 

uses, such as brackish/saline groundwater, “co-produced water” from oil and natural gas wells,

and wastewater discharged from domestic, industrial, and agricultural activities. Therefore, algae 

technology need not put additional demand on freshwater supplies. Using poor quality water for 

algae production can serve two purposes: one is to dispose of water that would otherwise be 

costly (economically and environmentally) to dispose, and the other is to utilize poor quality 
19

water to create products that have economic value—algal biofuels and biomass for animal feed 

or fertilizer.

Brackish water is defined as water containing total dissolved solid (TDS) concentrations between 

1,000 and 10,000 milligrams per liter (mg/L). This definition includes slightly-saline (1,000 to 

3,000 mg/L TDS) and moderately-saline (3,000 to 10,000 mg/L TDS) water (USGS 2009). As a 

reference, freshwater contains less than 1,000 mg/L, highly-saline water has about 10,000 to 

35,000 mg/L TDS (seawater has a salinity of roughly 35,000 mg/L TDS), and brine has more 

than 35,000 mg/L TDS. Groundwater with TDS concentrations greater than 3,000 mg/L is 

unusable for irrigation without dilution or desalination and is not safe for most poultry and 

livestock watering (Warner 2001). 

High salt levels occur naturally in some parts of India such as the coastal areas, but in many

cases this has been exacerbated where human activities accelerate the mobilization and 

accumulation of salt. Inland groundwater salinity is present in arid and semi-arid regions of the 

country. Figure 12 illustrates the geographic distribution of brackish groundwater in India. There 

are several places in Rajasthan and southern Haryana where TDS in groundwater exceeds 6,700 

mg/L making the water unsuitable for agricultural activities without treatment (CGWB 2006b). 

Desalination of saline or brackish water for use in irrigation and human consumption, in addition 

to being a costly option, presents some environmental challenges associated with its energyintensity, GHG emissions, and disposal of the salty brine by-product. Many species of algae have 

a high tolerance to salinity; therefore, in addition to coastal areas, the algae technology can target 

parts of the country where the presence of saline groundwater resources prevents their direct use 

in other applications. 

If brackish/saline water is used for algae production, an important consideration is where and 

how algal growth media is disposed of after cultivation. Although the water can be used for 

many generations of algal production, evaporation (particularly in open ponds) will concentrate 

higher levels of salts in the water and ultimately to beyond the range suitable for algal growth. 

The typical method for dealing with this problem is to dispose of a certain amount of the spent 

media during harvesting as “blowdown” water. This water is then replaced with new water from 

the source (fresh or saline). The blowdown water will contain more elevated levels of salts and

potential contaminants from flue gas, algal byproducts, and probably some live algal cells. 

Returning this water to the source (e.g., aquifer) may be problematic. The uses of evaporation 

ponds or ocean disposals are other potential options but will also impact the siting decision.
20

Figure 12. Brackish groundwater in India

As mentioned above, the algae biofuels technology could utilize another source of low-quality 

water, co-produced water, associated with oil and natural gas extraction. Unfortunately, data on 

co-produced water volumes and disposal methods in India was not available. It is possible that 

this information exists but was not obtained due to access constraints given the proprietary nature 

of this type of information. Figure 13 shows the geographic distribution of oil and natural gas 

fields in India to illustrate existing locations of produced water resources. This information could 

be used to guide future, more refined analysis related to this resource potential. 
21

PEL – Petroleum Exploration License; ML – Mining Lease

Figure 13. Oil and gas fields in India

Production of crude oil in India is about 34 Mt annually or approximately 252 million barrels 

(bbl)2

As shown in Figure 13, oil and natural gas in India are produced both onshore and offshore. 

Without information on the disposal method practiced in the country, it is difficult to estimate the 

(MPNG 2009). The global average water cut (i.e., the ratio of water produced from a well 

compared to the volume of total liquids) is estimated at about 75% (The Oil Drum 2009). This 

means that about 3⁄4 of the fluids brought up a well are water; therefore, this resource could be 

substantial in India. Natural gas wells typically produce much less water than oil wells (ANL 

2009). 

 2 1 tonne = 7.4 barrels, assuming an average density of 0.85 g/cm3 (or kg/L or t/m3) and 159 L/bbl (oil barrel; 1 nonbeer fluid barrel = 119 L)
22

amount of produced water that could be available for algae production. For offshore production 

activities, produced water is usually disposed of through direct ocean discharge after treatment, 

although sometimes it is transported to shore for disposal. Most of the production in India (about 

70%) comes from offshore fields (MPNG 2009); therefore, it is possible that a large portion of 

the produced water in India is currently disposed of into the ocean. At onshore fields in many 

countries, most produced water is re-injected to maintain reservoir pressure and hydraulically 

drive oil toward a producing well (ANL 2009). A small portion of onshore-produced water is 

disposed of in onsite evaporation ponds or offsite treatment facilities, and some is used in 

agricultural and industrial activities if certain water quality conditions are met. The challenge to 

using produced water in the agricultural sector is its salinity, which is often greater than that of 

seawater. Moderately-saline produced water, up to 3,000 mg/L TDS, has been used for irrigation, 

but its continuous use, particularly in arid climates, leads to build-up of salts in the soil surface 

creating undesirable ecological conditions. The algae biofuels technology could take advantage 

of this poor-quality water by growing salt-tolerant species, thus avoiding pressure on freshwater 

resources. In addition to salt, however, there are other contaminants in produced water (oil and 

grease, inorganic and organic compounds, and radioactive material) that prevent its direct use 

and mandate treatment. These constituents could be harmful to algae as well. Detailed onsite 

evaluation of produced water resources would determine their potential for algae production. 

Wastewater discharged from domestic, industrial, and agricultural activities is another source of 

low-quality water that could be used for algae production. Using wastewater effluent as pond 

medium in co-located algae farms with facilities treating sewage, industrial wastewater, and 

agricultural drainage waters provides a cost-effective solution not only to water but also to land 

and nutrients considerations because the wastewater treatment function would cover nearly all 

costs. There is also an environmental benefit of using the wastewater effluent for growing algae. 

These waters, particularly sewage effluent and agricultural runoff, are high in nutrients such as 

nitrate and phosphates and when released into rivers, lakes, or the ocean causes eutrophication—

nutrient pollution—leading to negative impacts on water quality and aquatic ecosystems. Algae 

requires these nutrients to grow, as discussed in the next section of this report; therefore, using 

the wastewater effluent as an algae pond medium provides an effective way for nutrient removal 

and prevention of natural waters’ pollution while creating a product with an economic value. 

According to the Central Pollution Control Board (CPCB 2005), there are about 269 sewage 

treatment plants (STP) in India, of which 231 are operational and 38 are under construction, 

located in 160 cities and towns. Given that the majority of the population in the country lives in 

rural areas (about 70%) and the STP are located in urban areas, it is evident that sewage is not 

treated in rural areas and it is disposed of in nearby rivers, lakes, or the ocean. Perhaps the 

development of algae production facilities in rural areas coupled with wastewater treatment 

would stimulate not only economic growth in these areas but would also improve their 

environmental footprint. Similar benefits could be provided by using agricultural drainage waters

for growing algae. Agricultural drainage water is the excess water that runs off the field at the 

low end of furrows, border strips, basins, and flooded areas during irrigation or rainfall. In some 

parts of the country, where water resources are scarce, drainage water is re-used to meet crop 

water requirements. This, however, is applicable to drainage water with relatively good quality. 

Often, in addition to high nutrients, drainage water is high in salt content or the salinity increases

with each re-use, which prevents its use for irrigation, but it could be suitable for cultivating salttolerant algae species. 
23

Sources of industrial wastewater include the iron and steel-manufacturing sector, mines and 

quarries, chemicals, and the food industries. It is estimated that a large quantity of industrial 

wastewater is generated in India: about 1,057 trillion cubic meters (Tm3) in 1997 (Ravindranath

et al. 2005). Most of this volume comes from steel plants (1,040 Tm3), followed by the pulp and 

paper plants (7.2 Tm3), distilleries (6 Tm3), cotton plants (1.5 Tm3), and other food-processing 

and chemicals facilities. 

Figure 14 shows the location of STP and steel plants in India as well as the irrigated lands as a 

proxy for agricultural drainage waters. These locations should be further investigated as potential 

sites for co-locating algae farms, thus taking advantage of the existing infrastructure and 

providing ecological benefits to the area. 

Figure 14. Sources of domestic, industrial, and agricultural wastewater
24

Carbon Dioxide and Other Nutrients

Optimal algae growth occurs in a CO2-saturated environment. Therefore, algae production 

provides an excellent opportunity for the utilization of carbon emissions and serves as a 

complement to subsurface sequestration. India was the fourth-largest emitter of CO2 in 2006, 

releasing 1,510 Mt into the atmosphere, or about 5% of the world total (United Nations 2009).

The largest anthropogenic source of CO2 emissions in India is the combustion of fossil fuels used 

in power generation, industrial processes, transportation, agriculture, commercial services, and

the residential sector. It is expected that India will continue to expand coal power generation 

given its large coal reserves and increasing energy consumption. It is also expected that the 

transportation sector will continue to grow as vehicle ownership increases. Therefore, the

country’s continuous economic development, under a business-as-usual scenario, will lead to 

more CO2 emissions in the future. The Indian Government projects that the country’s CO2

emissions will grow three to five times by 2031 (YSFES 2009). 

Not all CO2 emissions are suitable for capture. This is applicable to large stationary sources with 

high concentrations of CO2. In India, these include thermal power plants, steel plants, cement 

plants, fertilizer plants, refineries, and petrochemical plants. Together, these facilities emitted

638 Mt of CO2 in 2007, nearly half of the total CO2 emissions in India (CARMA 2007). Figure 

15 depicts the location of large stationary sources of CO2 in India and their emissions in 2007. 

These facilities are widely distributed throughout the country with some large clusters providing 

an opportunity for large-scale algae production. The large clusters overlap with India’s major 

industrial regions: Delhi, Mumbai, Ahmadabad, Kolkata, Madras, and Varanasi. There are other 

smaller clusters of stationary CO2 sources in central India and around cities in other parts of the 

country. 

The concept of co-locating large point sources of CO2 with algae farming provides an effective 

approach to recycle the CO2 into a useable liquid fuel. To put this into perspective, capturing 

around 20% of the 638 Mt of CO2 released into the atmosphere from large stationary sources by 

algae for conversion to fuels would be enough to displace 30% of diesel fuel currently used in 

India3

 3 India’s HSD (high speed diesel) consumption in 2008–2009 was 52 Mt (MPNG 2009).

. This is based upon an estimated 40 gallons of algal oil (about 0.13 tonnes) per tonne of 

CO2 consumed during algal biomass production at 30% lipid algal content by weight (USDOE 

2009). Therefore, while it will not be practical to assume that algal production could absorb all 

CO2 emissions from India’s large stationary sources, the CO2 resources available can yield large 

quantities of algal oils and ultimately transportation fuels.
25

Figure 15. Carbon dioxide emissions from large stationary sources

In addition to CO2, algae require nitrogen, phosphorous, sulfur, and other trace nutrients to grow; 

diatoms also require silicon for construction of the cell wall. For co-located algae farms with 

wastewater treatment facilities, the nitrogen and phosphorus would be provided by the effluent

used as pond medium. For dedicated algae farms, sludge (the residual material left from the 

treatment process) could be used as well as animal manure, another nutrient-rich resource. It is 

important that dedicated algae farms be located near the nutrient sources to keep transportation 

costs low. Nitrogen could also be supplied by coal-burning power plants as nitrogen oxide 

(NOx). Additionally, coal-burning power plants could provide sulfur as sulfur oxide (SOx). 

Silicon for diatom growth will likely require supplementation. Figure 16 shows the distribution 

of nutrient sources in India to illustrate areas with opportunities for co-locating algae farms or 

situating them nearby. It must be noted that nutrient requirements, like growth temperature, must 

be maintained within an optimal range to promote maximal growth. Too little of any one 

particular nutrient will reduce the growth rate and conversely, too much of a nutrient can prove 
26

toxic. Nutrient limitation can result in increased overall lipid content in algal cells, but it comes 

at the expense of overall productivity (USDOE 2009).

Figure 16. Nutrient sources for algae production

Land

India has a total land area of approximately 297 million hectares (Mha)4

 4 Country area is about 328 Mha.

. The share of 

agricultural land in 2007 was significant, about 60% (180 Mha) of the total land area (FAOSTAT

2007). The majority of this land is under cultivation for food crops, and only about 3.5% (10.4 

Mha) of the total land area is dedicated to pasture. Forest land covers about 22% of the country’s 

area, and the remaining 14.5% is other land (e.g., build-up areas and barren land).
27

The availability of land for algae production in India will depend on many physical, economic, 

legal, social, and political factors. Physical characteristics, such as topography and soil, could 

limit the land available for algae farming in some locations. Topography would be a limiting 

factor for these systems since the installation of large shallow ponds requires relatively flat 

terrain. Areas with more than a 5% slope5

 5 Slope is steepness of the landscape. It is measured in degrees or as a percentage. Percent Slope = Rise/Run*100.

can be effectively eliminated from consideration due 

to the increased costs of site development. Soils, and particularly their porosity/permeability 

characteristics, affect the construction costs and design of open systems by virtue of the need for 

pond lining or sealing. Soils with low permeability (such as clay soils) are good for aquaculture 

as the water loss through seepage or infiltration is low. Figure 17 illustrates areas with flat terrain 

in India as well as locations where they overlap with clay soils. It shows that the majority of the 

country is suitable for algae production from topography’s perspective except the mountain areas 

in the north, east, and some internal parts of the country. Large portions of central and eastern 

states such as Madhya Pradesh Maharashtra, Karnataka, and Gujarat have a combination of flat 

terrain and clay soils. Clay soils suggest challenges for food crop production but are the preferred 

soil type for installation of algae ponds; thus, they may present an opportunity for algae farming 

in areas where they exist. A more refined examination of these soils, including spatial 

distribution and land use, would determine the possibility of siting algae farms in the areas

outlined in Figure 17.

For example, a rise of 2 meters over a distance of 100 meters describes a 2% slope. In general, 0%–5% slope is 

considered flat area, gentle slope is 6%–10%, moderate slope is 11%–25%, and steep slope is 25% and greater.
28

Figure 17. Physical characteristics of land suitable for algae production

Land use is a very important consideration in evaluating locations suitable for algae farming, and 

certain land use categories will limit the land available to this technology. These categories 

include agricultural and forest lands, protected areas and other environmentally sensitive areas 

(such as biodiversity hot spots), and lands with cultural and historic value. Agricultural land in 

India covers a large portion of the country, as illustrated in Figure 18. Therefore, to avoid 

competition with food/feed/livestock production, algae technology should focus on the degraded 

portions of these lands, called “wastelands” in India. The wastelands include degraded cropland 

and pasture/grazing land as well as degraded forest, industrial/mining wastelands, and 

sandy/rocky/bare areas. The Ministry of Rural Development’s Department of Land Resources

and the National Remote Sensing Agency (MRD-NRSA 2005) developed a very detailed 

assessment of wastelands in India. It estimated that the extent of these lands is about 55 Mha

(approximately 17% of total land area). States with the largest amount of wasteland include 

Rajasthan, Jammu and Kashmir, Madhya Pradesh, Maharashtra, and Andhra Pradesh. The results 
29

of this study are shown in Table 1, and the Appendix contains state-specific maps illustrating the 

spatial distribution of these lands (Figures 28–59). This information would be very useful to

policymakers and industry developers in selecting the most suitable locations for algae farming.

Figure 18. Land use
30

Table 1. Wasteland in India by State

Source: MRD–NRSA 2005; * Area not surveyed: 12,084,900 ha
31

Other considerations that may limit the land available for algae production are land ownership 

and land price. Land ownership information provides valuable insights on which policies and 

parties could affect project development. In India, most of the agricultural land is privately 

owned and some is under the jurisdiction of state governments. State governments often are the 

middleman in land acquisition and distribution. The majority of farm holdings are small—the 

average size of operational farms is about 1.18 ha (New Agriculturist 1999). Therefore, acquiring

land for large-scale production of algae may present some challenges considering that the 

process may have to involve many parties; although, land takeover in India is not considered a 

problem when adequate compensation is offered.

Data on land prices in India is difficult to obtain due to the high variability between and within 

the states. Land prices are hard to generalize because they depend on numerous factors including 

location, availability of water, and proximity to transportation infrastructure. Unfortunately, no 

centralized agency that collects and disseminates this type of information was identified. Given 

that the algae technology’s strategy is to use wastelands and low-quality water, it is expected that

the price of those lands would be favorable. 

A rather large surface area would be required for commercial-scale algae production (either open 

ponds or PBRs). This is due to the fact that increasing culture depth does not increase 

productivity per unit area because solar radiation cannot penetrate deep into the culture. In other 

words, light is ultimately the limiting resource. Algae productivity is measured in terms of

biomass produced per day per unit of horizontal surface area. Assuming a reasonably 

conservative average productivity of between 8 and 20g/m2

/day with 15% oil content on a dry 

weight basis, a hectare could produce about 4 to 10 tonnes (t) of algal oil (biodiesel) per year,

which is double the value of the next highest producing crop, oil palm, which generates between 

2 and 5 t/ha/yr. India’s current diesel consumption is 52 Mt per year (MPNG 2009). Therefore, 

to substitute 20% of this consumption, algae production would need about 1–2.6 Mha while 

Jatropha curcas, another feedstock considered for biodiesel production in the country, with best 

yield of 1 t/ha/yr would need 10.4 Mha of land (most likely requiring irrigation and fertilizer).

Moreover, an aggressive R&D program has the potential to reach much higher productivity—

theoretical analyses indicate that productivity of over 37 t/ha/yr are possible (Weyer et al. 2009).

Therefore, the land needed for algae production to substitute 20% of current diesel consumption

would be much less, about 280,000 ha, and approximately 1.4 Mha would displace the country’s 

entire diesel consumption. Figure 19 and Table 2 illustrate visually and statistically the diesel 

consumption by state and the land area needed for algae production to meet this demand

(indicated by boxes in Figure 19) using an average near-term productivity rate of 7 t/ha/yr. 
32

Figure 19. Land area needed for algae production to displace states’ entire diesel consumption
33

Table 2. Land Area Needed for Algae Production to Displace States’ Entire Diesel Consumption

 *Source: MPNG 2009
34

Site-Suitability Analysis

This section builds upon the results of the resource evaluation conducted previously to identify 

areas in India suitable for algae farming. Two algae production facility types are considered: colocated facilities, which produce algal biomass as a consequence of another process, and 

dedicated facilities, with the main purpose of algae production. Co-located facilities are those 

operating in conjunction with wastewater treatment where algae are produced as a byproduct of 

the wastewater treatment process. In the near-term, algae production at wastewater treatment 

facilities is considered the “low-hanging fruit” of algal biofuels. The knowledge and experience 

gained at these facilities could provide the base, in the long-term, for stand-alone, dedicated 

biofuels production systems. As mentioned earlier, using the wastewater effluent as pond 

medium provides a cost-effective solution to water, land, and nutrients considerations because 

the wastewater treatment function would cover nearly all costs. Given the favorable climate

conditions in India—considerable sunshine and generally warm weather—and simplicity of 

construction and operation, engineered waste stabilization ponds (WSP) are successfully 

operating in the country as one of the main wastewater treatment technologies. WSP are any 

pond or pond system designed for biological waste treatment. These ponds present an 

opportunity for early development of algae production systems in India. Microalgae, unlike 

terrestrial plants that capture CO2 from the atmosphere, require concentrated sources of CO2, 

such as power plants flue gas, for high productivity. Therefore, if algae farming is considered in 

conjunction with sewage wastewater treatment, additional CO2 would be needed, preferably from 

a nearby source to keep the transportation costs low. Figure 20 shows the location of WSPs in 

India and the proximity of stationary CO2 sources to illustrate opportunities for co-locating algae 

farms. It also shows the location of steel plants, a major source of industrial wastewater in the 

country. The steel industry, in addition to being capable of providing water, can also supply CO2 

for the cultivation of algae. If algae farming is considered in conjunction with steel plants, it 

most likely will require additional nutrients. The steel plants illustrated in Figure 20 are located 

in areas with a large concentration of livestock production, which could supply animal manure as 

algae fertilizer.

The analysis of potential locations for co-located algae facilities considers only domestic (WSP

in particular, not all sewage treatment plants) and industrial wastewater treatment facilities (steel 

plants). Agricultural wastewater (such as drainage water) is not included due to lack of data; 

therefore, there are additional opportunities for co-locating algae farms in other parts of the 

country that should be further investigated.
35

Figure 20. Options for co-locating algae production with domestic and industrial wastewater 

treatment

To identify suitable locations for dedicated algae farms in India, this study applies a series of 

steps as outlined in Figure 21 using GIS techniques. The analysis is centered on the stationary 

industrial CO2 sources given key advantages of co-locating algae production with these facilities: 

supplying carbon for enhanced algal growth with low/no transportation costs and a means for 

capturing CO2 before it is released to the atmosphere, thus providing potential carbon credits for 

utilities and industrial facilities. This combination of enhanced algal growth and GHG reduction

makes co-location of algal cultivation with industrial CO2 sources a promising option for future 

dedicated algae farms in India. 

The analysis begins with the location of stationary CO2 sources in India and looks for areas 

where these facilities coincide with other inputs necessary for algae growth or conditions that

meet the engineering, economic, environmental, and social requirements for this technology. 
36

These include flat terrain, sufficient solar radiation and daily sunshine hours, and availability of 

low-quality water and nutrients. In addition, these locations and their surrounding areas need to 

be outside of protected areas and wetlands, road accessible, and in proximity to populated places 

(labor availability). The results of this analysis are illustrated in Figure 22. Based on the 

available information, the most suitable locations for algal cultivation facilities in India are in the 

western and southern parts of the country and along coastal areas.

Figure 21. Methodology for selecting suitable locations for dedicated algae farms

The next step in the analysis, which is beyond the scope of this project, is to evaluate the land 

availability for algae farming around the suitable stationary CO2 sources, preferably wastelands,

to avoid competition with valuable fertile agricultural land. This evaluation would be able to 

determine whether or not the wastelands estimated by the MRD-NRSA (2005) are actually 

available for algae production because some of these lands could already be in use. This detailed 

level of information is not readily available; thus, the analysis should be performed on site. Also, 

the land availability would be determined by the size of potential algae farms. A general

examination of the suitable stationary CO2 sources (Figure 22) and wastelands in India 

(Appendix) suggests that most of these sources are surrounded by or in close proximity to

wastelands. Further, more detailed analysis would reveal the potential for algae production on 

these lands.
37

Figure 22. Options for locating dedicated algae production facilities
38

Conclusions

The results of this study indicate that India has very favorable conditions to support algae 

farming for biofuels production. Most of the country meets the climate requirements for growing 

algae: sufficient solar radiation, sunshine hours, and warm temperatures. A large number of 

stationary CO2 sources—thermal power plants, steel plants, cement plants, fertilizer plants, 

refineries, and petrochemical plants—are scattered throughout the country thereby providing 

opportunities for co-locating algae farms and recycling the CO2 into a useable liquid fuel. Given 

the country’s large concentration of population and agricultural activities, human and animal 

organic wastes are available as sources of nutrients such as nitrogen and phosphorous needed for 

algae growth.

Water resources in many parts of India are limited. Therefore, in order to be sustainable, the 

algae biofuels technology should not put additional demand on freshwater supplies and use lowquality water such as brackish/saline groundwater, co-produced water associated with oil and 

natural gas extraction, agricultural drainage waters, and other wastewaters. Although information 

on the quantity of these water resources in India is not available, the intensity of activities 

associated with their production suggests that there is a vast potential in the country. 

Sustainable algae production also implies that the farming facilities would not be located on 

valuable fertile agricultural lands but on marginal lands (classified as wastelands in India). These 

lands include degraded cropland and pasture/grazing land, degraded forest, industrial/mining 

wastelands, and sandy/rocky/bare areas. It is estimated that the extent of these lands in the 

country is about 55.27 Mha (approximately 18% of the total land area). If India dedicates only 

10% (5.5 Mha) of its wasteland to algae production, it could yield between 22–55 Mt of algal 

oil6 which would displace 45%–100% of current diesel consumption7

. The production of this 

amount of algae would consume about 169–423 Mt of CO2

8 which would offset 26%–67% of 

the current emissions9

This study illustrated options for siting two algae production facility types: co-located facilities, 

which produce algal biomass as a consequence of another process, and dedicated facilities, with

the main purpose of algae production. Co-located facilities are those operating in conjunction 

with wastewater treatment where algae are produced as a byproduct of the wastewater treatment 

process. Using the wastewater effluent as pond medium provides a cost-effective solution to 

water, land, and nutrients considerations because the wastewater treatment function would cover 

nearly all costs. Domestic and industrial wastewater treatment facilities were considered in the 

analysis as potential sites for co-locating algae farms. This opportunity exists in most of the 

states in India.

. 

The site-suitability analysis for dedicated algae farms was centered on the stationary industrial 

CO2 sources given key advantages of co-locating algae production with these facilities: 

 6 Assuming algal oil productivity between 4–10 t/ha/yr. 7 India’s HSD (high speed diesel) consumption in 2008–2009 was 52 Mt (MPNG 2009). 8 Assuming for every 40 gallons of algal oil (about 0.13 tonnes), a tonne of CO2 is consumed during the algal 

biomass production at 30% lipid algal content by weight (USDOE 2009). 9 Stationary CO2 sources emitted 638 Mt of CO2 in 2007, nearly half of the total CO2 emissions in India (CARMA 

2007).
39

supplying carbon for enhanced algal growth with low/no transportation costs and a means for 

capturing CO2 before it is released to the atmosphere, thus providing potential carbon credits for 

utilities. The study considered stationary CO2 sources in areas where these facilities coincide 

with other inputs necessary for algae growth or conditions that meet the engineering, economic, 

environmental, and social requirements for this technology. The results of this analysis indicate 

that suitable locations for dedicated algae farms are in the western and southern parts of the 

country and along coastal areas. 

It is important to note that the quality of the data used in this study is uncertain (most datasets 

were not checked for accuracy), and that due to lack of data, some resources were not evaluated 

(particularly co-produced water and agricultural wastewater). Therefore, the results of the sitesuitability analysis are not complete and additional opportunities for co-located or dedicated

algae farming systems most likely exist in other parts of the country. The purpose of this sitesuitability analysis was to illustrate a methodology for refining the prospecting process of site 

identification and serve as a base for further analysis. This methodology could be revised to 

include other inputs if additional data are made available.

Future work could focus on validating the quality of existing data and gathering additional 

information such as the location of agricultural runoff collection sites, evaporative ponds used by 

the oil/gas production and mining industry, and other wastewater treatment facilities. It would 

also be helpful to collect information on the volume of wastewater. An analysis of the location 

and volume of low-quality water resources in India would be particularly useful in understanding 

better this resource potential not only for the production of algae biofuels but for other 

technologies as well. 

India is a large country with diverse landscape and resources. Therefore, future work could focus 

on a state or even smaller geographic area to provide a more detailed examination of the resource 

potential for algae production and pinpoint the most suitable locations. The authors believe that 

the information provided in this study will serve as a base for further analysis of the algae 

biofuels potential in India and assists policymakers and industry developers in their strategic 

decisions.
40

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44

Appendix

Figure 23. Monthly average solar radiation
45 

 Source: IMD 2009 

Figure 24. Monthly average daily sunshine hours
46

 Source: Chandrasekharam, D.

Figure 25. Geothermal resources in India
47

Figure 26. Cyclone prone areas
48

Figure 27. Flood zones
49

Figure 28. Wasteland in Andhra Pradesh
50

Figure 29. Wasteland in Arunachal Pradesh
51

Figure 30. Wasteland in Assam
52

Figure 31. Wasteland in Bihar
53

Figure 32. Wasteland in Chhatishgarh
54

Figure 33. Wasteland in Goa
55

Figure 34. Wasteland in Gujarat
56

Figure 35. Wasteland in Haryana
57

Figure 36. Wasteland in Himachal Pradesh
58

Figure 37. Wasteland in Jammu & Kashmir
59

Figure 38. Wasteland in Jharkhand
60

Figure 39. Wasteland in Karnataka
61

Figure 40. Wasteland in Kerala
62

Figure 41. Wasteland in Madhya Pradesh
63

Figure 42. Wasteland in Maharastra
64

Figure 43. Wasteland in Manipur
65

Figure 44. Wasteland in Meghalaya
66

Figure 45. Wasteland in Mizoram
67

Figure 46. Wasteland in Nagaland
68

Figure 47. Wasteland in Orissa
69

Figure 48. Wasteland in Punjab
70

Figure 49. Wasteland in Rajasthan
71

Figure 50. Wasteland in Sikkim
72

Figure 51. Wasteland in Tamil Nadu
73

Figure 52. Wasteland in Tripura
74

Figure 53. Wasteland in Uttaranchal
75

Figure 54. Wasteland in Uttar Pradesh
76

Figure 55. Wasteland in West Bengal
77

Figure 56. Wasteland in Andaman and Nicobar Islands

Figure 57. Wasteland in Delhi
78

Figure 58. Wasteland in Dadra and Nagar Haveli

Figure 59. Wasteland in Daman
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The study evaluates climate conditions, availability of CO2 and other nutrients, water resources, and land 

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