JERUSALEM, July 7 (Xinhua) -- Israeli company Seambiotic and NASA's John Glenn Research Center will join hands in studying micro-algae cultivation to produce bio-fuel, a local daily reported Tuesday.

    The two sides will join hands in the production of micro-algae, which can be used as a feedstock for bio-fuel, in an effort to reduce the use of fossil fuel, said the Jerusalem Post.

    Seambiotic USA, a subsidiary of the Israeli company, entered into a Space Act Agreement with NASA in late March to combine the agency's expertise in computing models with the Israelis' knowledge of a cost-effective method for micro-algae cultivation, said the report, citing Noam Menczel, director of investor relations and business development at Seambiotic.

    "This is a major achievement," Menczel said Monday, adding that "Not many companies are recognized by NASA as a technology leader."

    Ashkelon-based Seambiotic, founded in 2003, was the first company to use flue gas from coal-burning power stations as a source for carbon dioxide to cultivate micro-algae. The nearby Israel Electric Corporation in Ashkelon serves as the source for carbon dioxide and water, which the company uses to cool its turbine.

    Seambiotic uses these waste products as raw materials to cultivate the micro-algae, making it the cheapest method to harvest the organism. The research was previously conducted on a pilot level, but is now transiting to a large, industrial size.

    "The whole idea is to make the process cheap," Menczel said. "NASA will develop theoretical models and we will adapt them in the field (in Ashkelon) and make it workable."

    Other methods for creating bio-fuel use corn and sugar as the main substances, which are agricultural products that compete at food prices. However, algae does not face the same price fluctuations, making it a more cost-efficient choice.

    As a result of the combined technology from the two groups, a more efficient way for the production of bio-fuel and food additives through micro-algae could be found, Menczel said.

    NASA's Glenn Research Center in Cleveland, Ohio, is one of the governmental agency's ten field centers, focused on conducting basic-level research.