A project to use industrial waste gas to cultivate algae, produce algal oil and convert the oil to biofuel has received $1.5 million from the U.S. Department of Energy.

UOP LLC, a Honeywell International Inc. subsidiary in Des Plaines, Ill., received the money to design a demonstration system that will capture carbon dioxide from exhaust stacks at Honeywell’s manufacturing facility in Hopewell, Va., and deliver the CO 2to an algae-cultivation system. The system will extract algal oil from the algae, convert it to biofuel and produce algae residual. The residual will be converted to pyrolysis oil and burned to generate renewable electricity. Pyrolysis oil is a clean-burning sustainable and cost-effective fuel-oil substitute.

The project, managed by the DOE’s National Energy Technology Laboratory, also will use wastewater from the manufacturing facility for the algae cultivation project, allowing the algae to consume nitrogen in the wastewater.

UOP will design equipment to capture CO 2from the exhaust stacks of the Hopewell caprolactam facility and deliver it in a controlled and efficient process to a pond near the plant where algae will be grown. Caprolactam is a colorless solid organic compound used to produce nylon as well as ammonium sulfate, a fertilizer.

The project also will support an independent evaluation of rapid thermal processing technology from Des Plaines, Ill.-based Envergent Technologies, a joint venture between UOP and Ensyn Corp., Wilmington, Del. The RTP system can be used to convert waste biomass from algae production into pyrolysis oil.