Earlier this week, we reported on research efforts to produce hydrogen gas for fuel cells through artificial photosynthesis and discovered the technology was still a long way off. Well, how about good old natural photosynthesis? That, too, is a process in its infancy because there are quite a few things we need to manipulate in order to produce enough hydrogen to make it worth our while.

It could slow carbon dioxide emissions, power cars and jets, and replace petroleum altogether. Pond scum or green slime–whatever you want to call it–algae is the next great hope in the world of environmental startups.

Last week, the oil company Royal Dutch Shell announced plans to build an algae biodiesel plant in Hawaii. The project will progress in stages: first, the company will build a small research plant, with hopes to build a full-scale commercial plant within two years.

Take a peak inside the Solix labs to see their oil-from-algae operation up close in our photo gallery and video

“Here it is!” Jim Sears says with a tour guide’s come-see enthusiasm.