"In a major eco-friendly step towards renewable energy generation in India, seaweed sourced ethanol (ethyl alcohol), a biofuel additive in transport fuel, has been used to run a car for the first time. Central Salt and Marine Chemicals Research Institute (CSMCRI) in Bhavnagar scientists recently drove an ambassador car with a fuel blend of 10 per cent ethanol and 90 per cent petrol.

While this green fuel is already produced and used to run cars in some countries, specially US and Brazil, in India, this was not possible as sugarcane, the main source of ethanol, is a food crop here. To counter this disadvantage, CSMCRI has become the first Indian body to successfully produce ethanol from a seaweed, Kappaphycus alvarezii.

Dr PK Ghosh, director, CSMCRI, which is a national laboratory under aegis of Council of Scientific and Industrial Research, New Delhi, said, "This new source of ethanol has opened doors for large-scale production and its use to run automobiles in India." " News paper report.

It is one Institution in India which is making strides in developing Jatropha as biofuel also and it has vehicles run on bio-diesel which I have witnessed myself .
My heartiest congrutulations to Dr Ghosh and his team of dedicated scientists and research students and staff. Besides this  it has one of the best library systems I have ever seen in India (  though I have not seen all libraries of India). 
However I am not sure if Algae could provide sufficient amount of biofuel but it is heartening to see this report.