Biological hydrogen can be produced in an algae bioreactor. In the late 1990s it was discovered that if the algae are deprived of sulfur it will switch from the production of oxygen, i.e. normal photosynthesis, to the production of hydrogen.
It seems that the production is now economically feasible by trespassing the 7–10 percent energy efficiency (the conversion of sunlight into hydrogen) barrier[8].
Biological hydrogen can be and is produced in bioreactors that utilize feedstocks other than algae, the most common feedstock being waste streams. The process involves bacteria feeding on hydrocarbons and exhaling hydrogen and CO2. The CO2 can be sequestered successfully by several methods, leaving hydrogen gas. A prototype hydrogen bioreactor using waste as a feedstock is in operation at Welch's grape juice factory in North East, Pennsylvania.