Extensive research was conducted on the production of biodiesel from algae grown in large raceway ponds that use waste CO₂ from coal fired power plants as a fertilizer for the algae. Algae pond operations are very simple. The algae are introduced into the pond and allowed to grow until they occupy 1% of the volume of the pond. Very high growth rates are achieved because the pond is constantly mixed by the paddle wheel and it is infused with an ample amount of CO₂ and fertilizer. The paddle wheel rotates providing a current of 20 cm/s around the pond. The mixing is required to ensure that all of the algae receive the necessary amounts of solar radiation, CO₂, and fertilizer required for optimal growth. The CO₂ is injected into the algae pond in the form of flume gas from a nearby coal fired electric plant. The bubblers are spaced around the pond so that the CO₂ is evenly dispersed throughout the pond.

Building the large system required installation of two water pipeline of 1,300m in length. The ponds were 14 x 77 m, with concrete block walls and a central wooden divider. The paddle wheels were approximately 5m wide, with a sump that allowed counter flow injection of CO₂. The pond depth is 20 cm corresponding to a volume of 200 m³ or 200,000 liters, it is unlined and bottom to be made out of smooth concrete. Many ponds of this size would be fit into a small area along with larger settling ponds and a pumping centrifuge station in order to produce algae on a large scale.