Linde Group has entered into a multi-year agreement with Sapphire Energy, to co-develop a low-cost system to deliver carbon dioxide (CO2) for algae fuel production.

In addition, Linde will supply all of the CO2 to Sapphire`s commercial demonstration facility in New Mexico,US.

A single commercial algae-fuel production facility requires about 10,000 metric tonnes of CO2 per day, which is comparable to about 30% of the current merchant market for CO2 in the US.

Linde executive board member Dr Aldo Belloni said producing fuel by algae using CO2 from large emitters like power stations and chemical plants is a very promising way of reducing greenhouse gas emissions.