This final stage consists of producing adequate algae paste to test the output and economics of several biodiesel refinery manufacturers now under consideration. Algae Biofuels will own and operate the production and refinery facilities.

Algae BioFuels is considering sites in Arizona, New Mexico, California, Louisiana and Michigan for its initial commercial cultivation of algae feedstock in the United States. Australia and China are the leading candidates for production and refinery operations in the foreign marketplace.