Growing algae as a source of fuel could consume vast amounts of water and fertilizer, according to a study by the National Academy of Sciences. There's also a risk that the energy required to produce these fuels would make them impractical. These daunting technical problems need to be overcome if the nation wants to turn to algae fuels as a substitute for gasoline.
Source: http://www.npr.org/2012/10/25/163606540/algae-as-car-fuel-possible-but-not-sustainable?ft=1&f=1007
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