Sapphire Energy gets $104.5m for algae-based fuel plant

Sapphire Energy, a closely held developer of algae-based fuel, said it will get $104.5 million in US funds to build a biorefinery project near Las Cruces, New Mexico. The award is part of $564 million of stimulus spending announced today by the US government to speed the production of biofuels under the American Recovery and Reinvestment Act. San Diego-based Sapphire will receive a $50 million grant from the US Department of Energy and a $54.5 million loan guarantee from the US Department of Agriculture, the company said in an e-mailed statement. The money will help finance the expansion of Sapphire’s New Mexico pilot facility, where algae grown in ponds will be converted into diesel and jet fuel, the company said.