Researchers from the Wageningen University, Environmental Economics and Natural Resources Group (the Netherlands) recently reported a cost-effectiveness analysis on the production of algal bioenergy in the EU. The paper is published in the journal, Energy Policy (URL above). Oleagenous (oil-bearing) algae are said to be good feedstocks for biodiesel production because of their low carbon and water footprints. However, the cost of production is relatively higher than that of fossil fuel production. According to the paper, the cost of algal biodiesel production is presently three and a half times higher than the production cost of petroleum-based fuels, and two times higher the production cost of rapeseed biodiesel. In order for algal biodiesel to become commercially competitive, "the productivity of algae reactors would have to grow annually by at least three to four percent more than the productivity of other bioreactors over a stretch of fifteen years". Biotechnology investments and support from the government, as well as from the private sector will be important.