US-based Cellana has won a three-year $5.5m grant to develop a protein supplement from algae as a byproduct of algal biofuels production and to demonstrate its nutritional and economic value in livestock feeds.

Funding is provided through the US Department of Agriculture’s National Institute of Food and Agriculture and the US Department of Energy’s Biomass Program through the Biomass Research and Development Initiative.

The federal grant will help increase the availability of alternative renewable fuels and biobased products to diversify the nation’s energy resources.

The company will receive $5,521,173 for ‘Developing a New Generation of Animal Feed Protein Supplements’ project.

Under the grant, Cornell University will be conducting animal feeding trials using algae biomass provided by Cellana to identify the most economical and efficacious strains of algae.

Cellana, a subsidiary of Cellana Inc (formerly HR BioPetroleum), is a developer of algae-based biofuels and bioproducts.