It is possible to produce algae based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry?

1. Production of algae based biofuels is possible in seas only and not on continents.
2. Setting up and engineering the algae based biofuel production requires high level of expertise/technology until the construction is completed.
3. Economically viable production necessitates the setting up of large scale facilities which may raise ecological and social concerns.

Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3

US National research council report on Algal Biofuel (2012) observed that

1. Page 16: situating algae and cyanobacteria biomass production in the U.S. desert Southwest could be perceived as a good use of low-value land by some, but as an intrusion into pristine land by others. Similarly, the use of genetically modified organisms in production systems could affect social acceptability. So this is social concern. [and it also proves statement #1 wrong.]
2. Page 61: Open Algal ponds will attract insect larvae invasion and affect predator-prey balance. This is ecological concern. Hence Statement 3 is right.
3. Page 31: discusses the challenges in the choice of algae strains for biomass production, the technology to be used for fuel production, the source, and the type of cultivation facility (open versus closed). All this proves statement #2 is right.

Hence answer 2 and 3.