Solazyme, a renewable oil and green bioproducts company and leader in algal biotechnology, manufactured the world's first 100% algal-based jet fuel through its proprietary fermentation process in collaboration with renewable jet fuel processing technology from Honeywell's UOP. Solazyme's renewable Solajet™HRJ-5 is designed to meet all of the requirements for Naval renewable aviation fuel. In preliminary tests, it also meets the fuel requirements of the U.S. Air Force and meets the standards for commercial jet fuel.
This is the real front in the development of alternative fuels. DoD has a real incentive for this (as opposed to a near-term-ist, price sensitive commercial sector). Same for long range electric vehicles, fuel cell, or any other alternative energy solution.