I think you must mean BIO-diesel here. I wasn't aware that there was a problem with NOx emissions for diesels--I thought their problem was "particulates" and a lack of "low-sulfur" diesel fuel to run the newest engines (which bio-diesel certainly fixes).
But it'll take something like that "algae" process to provide ENOUGH "bio-oil" to make a dent in US fuel needs--soybeans just ain't gonna cut it.
I wonder if a diesel engine could be run on methanol???
I don't think so. Methanol has very high octane rating, 140-150. Diesel fuel has a cetane rating. Octane ratings refer to the slowing or controlling of the burning of gasoline. Cetane ratings refer only to the ease or speed of the ignition of diesel fuel. High cetane numbers mean that the fuel will ignite with relative ease or that it ignites well at low temperatures. Diesel = fast burn. Methanol = slow burn.
The natural algae can cause havoc on fuel tank filters when water is allowed to condense under the fuel in storage and it grows at the boundary line and then gets pumped into the fuel lines.