Microalgae is a highly efficient feedstock for producing biofuels that is more sustainable than using food crops. It can grow in non-arable land and water and recycles carbon dioxide from waste sources. While algae has been grown commercially for decades, producing cost-competitive biofuels from algae is challenging. However, Kai BioEnergy has developed an open pond production system that has significantly lower operating and capital costs than other methods, making algae-derived biofuels economically viable. Their process also has synergies with waste-to-energy systems through carbon dioxide recycling and use of algae biomass.