An associate press article published by the Bismarck Tribune discusses the possibilities of making biodiesel and jet fuel from particular strains of algae.  It sounds as though the technology is available but too expensive to use practically.  However, research continues, and some of it is happening at our own University of North Dakota.  From the article:

The Pentagon’s research arm, the Defense Advanced Research Projects Agency, is funding research into producing jet fuel from plants, including algae. DARPA is already working with Honeywell’s UOP, General Electric Inc. and the University of North Dakota. In November, it requested additional research proposals.