The Utah school will team with Montana State University to grow species of algae that thrive in geothermal vents and the Great Salt Lake in a test of their oil content.

USU energy lab director Jeff Muhs said algae that can withstand saline environments are useful because they could possibly be used to produce fuels using plentiful ocean water, sparing more valuable fresh water.

Algae accustomed to high temperatures could be used in conjunction with power plants to produce biofuel.

Algae that consumes carbon dioxide could use the carbon from power plants' waste gases to produce oils for conversion into fuel.

The research is one of six biofuel projects around the country funded by the U.S. Department of Energy.

The aim of the research is to find a form of renewable fuel that's dependable and economically viable.

Algae represents the third generation of biofuel research, Muhs said.

The first involved the use of corn to create ethanol, an option that raises food costs.

The second generation involved things like wood chips and switch grass, which don't compete with food needs. Yet turning those items into fuel requires a huge amount of energy.

Algae may overcome those problems and prove a viable fuel source. Unlike corn and other crops, producing algae doesn't require good soil, which means it could be produced in deserts, leaving farm land for food production, Muhs said.

Any technological advances learned by researchers are likely several years away, he said.