Algenol produces ethanol from carbon dioxide and water in hybrid algae. The hybrid algae are cyanobacteria enhanced by the addition of pyruvate decarboxylase and alcohol dehydrogenase to their genomic repertoire. These hybrid algae undergo photosynthesis and utilize carbon dioxide as the feedstock for making ethanol inside each algal cell. The ethanol made inside the cell diffuses through the cell wall into the culture medium and then evaporates, along with water, into the headspace of an enclosed, sealed photobioreactor. The ethanol-water vapor condenses on the inner surface of the bioreactor headspace and is collected by gravity, concentrated, and then distilled into fuel grade ethanol. Algenol currently has hybrid algae that produce ethanol at a rate of more than 1.5 moles per square meter of culture per week. If successfully scaled for commercial production this rate would translate into more than 5,000 gallons of ethanol produced per acre per year. The Company now has more than 300 algal strains capable of producing ethanol. Specific candidate strains for further scale up have been selected. Algenol believes it can achieve a net energy balance of over 5 to 1. An initial Life Cycle Carbon Analysis demonstrates that Algenol's production process has a carbon footprint less than 20% of petroleum. We estimate the initial capital cost for a commercial-scale integrated biorefinery to be $4-$6 per gallon of ethanol produced and the yearly operating cost of the commercial scale integrated biorefinery to be $1.25-$1.50 per gallon of ethanol.