Scottish Bioenergy Cooperative Ventures has been awarded the £40,000 ($57,000) Climate Change Innovation Prize from Royal Dutch Shell PLC’s Shell Springboard program. Based in St. Cyrus, Scotland, the company builds, sells and operates photobioreactors for capturing carbon dioxide emissions to grow algae feedstock for biodiesel production.

Scottish Bioenergy recently completed successfully testing a small-scale version of its photobioreactor at the Glenturret Distillery in Crieff, Scotland; the distillery was built in 1775 and the oldest working distillery in Scotland. Carbon dioxide from the distillery’s boiler exhaust was captured and percolated through the photobioreactor. The system also eliminated chemicals and copper from the waste exhaust.

“This is a fantastic endorsement of the project,” said David Van Alstyne, managing director for Scottish Bioenergy. “The financial award means that we can push ahead immediately with construction of the full system. “

The next phase of the project will be to build a photobioreactor at the distillery that’s capable of converting 20 metric tons of carbon dioxide into 6,000 liters (1,600 gallons) of biodiesel per year, according to The Edrington Group, which is backing the Scottish Bioenergy venture. The final phase will be to build a commercial-scale photobioreactor, larger than what the Glenturret Distillery can accommodate, to produce more than 1.2 metric tons of biodiesel per day.