Microbial and algal oils: Do they have a future for biodiesel or as commodity oils?

Abstract We review the prospects of using yeasts and microalgae as sources of cheap oils that could be used for biodiesel. We conclude that yeast oils, the cheapest of the oils producible by heterotrophic microorganisms, are too expensive to be viable alternatives to the major commodity plant oils. Algal oils are similarly unlikely to be economic; the cheapest form of cultivation is in open ponds which then requires a robust, fast‐growing alga that can withstand adventitious predatory protozoa or contaminating bacteria and, at the same time, attain an oil content of at least 40% of the biomass. No such alga has yet been identified. However, we note that if the prices of the major plant oils and crude oil continue to rise in the future, as they have done over the past 12 months, then algal lipids might just become a realistic alternative within the next 10 to 15 years. Better prospects would, however, be to focus on algae as sources of polyunsaturated fatty acids.