The American companies have together launched a month-long pilot program to commercially offer algae-derived fuel at retail pumps to test consumer response to the fuel.

The technology platform creates oils from plant sugars through a conversion process by microalgae in standard industrial fermentation equipment.

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SoladieselBD is compatible with existing diesel engines and enables drivers to use the fuel even in cold temperatures.

Operating vehicles with this fuel leads to 30% reduction in particulates, 20% reduction in CO and nearly 10% reduction in THC.

Clean Fuel Points in Redwood City, San Jose, Berkeley and Oakland will exclusively sell the fuel, which is priced the same as conventional diesel fuels.

Propel CEO Matt Horton said that the company seeks to providing consumers with quality, sustainable and domestically produced fuels, with the launch of the next generation fuels to the retail market.

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"Propel’s growing station network provides the critical link between these future fuels and today’s consumer fuel tanks, giving our customers a chance to make history," Horton noted.

Solazyme fuels VP Bob Ames noted that Solazyme’s technology platform meet or exceed the most stringent fuels specifications and requirements across the globe.

"We’ve successfully demonstrated our land-based fuels in fleet vehicles and corporate busses, and are excited about this pilot program with Propel because it enables us to make these fuels available to the public," Ames added.