SEATTLE – A University of Washington professor says she’s helped form a company to convert algae into a fuel that could replace gasoline.

Algae are plants -- among the oldest forms of life on the planet. There are warm water algae, and cold water algae, saltwater and fresh water algae, even algae that grow on land.

The popular view of algae is that it's just some sort of green slime. Algae gets no respect until you think about putting it into your tank.

“The caveat is, there are a lot of technical challenges to get over to have that barrel of oil at the end,” said algae botanist Rose Ann Cattolico.

And that's the trick -- creating biofuel from the fat that certain kinds of algae produce.  Algae fuel has been made, but not in huge cheap quantities to compete with oil.

The formation of a company called AXI may change that.

“You can grow it anywhere, whether that's in an arid area, a protected area, open ponds or enclosed photo bio-reactors. Lots of potential for it and everybody is looking for those technological advantages,” said Erick Rabins of Allied Minds, which owns AXI.

It is also claimed to be a greener fuel when it comes to greenhouse gas. While burning algae oil will produce carbon, growing algae also consumes mass quantities of carbon.

But how quickly will we see it at the corner gas station? Like algae, estimates are all over the map. Three-to-five years, or maybe even an entire generation.

Boeing has expressed interest in all sorts of biofuels, including algae. Earlier this year, a test was flown using a blend of biofuel and jet fuel on board a 747 in Europe.