Recently on this site, there has been some debunking of the economics of large-scale algae farming. Reading your description of carbon fuel cells, I wonder what the economics look like if you co-locate a fuel cell plant and an algae plant and get a $30 per ton subsidy on the CO2 absorbed?

I don't have enough background in business economics to say much, but the possibilities fascinate me.  Capturing CO2 for $30/ton ($110/ton of carbon) is just 5.5¢/lb of carbon.  A gallon of diesel contains roughly 6.6 pounds of carbon, for a cost of about 36¢/gallon; a gallon of ethanol contains about 5.9 pounds of carbon for a cost of 32¢/gallon.  The value of the fuel product is far more than the cost of the carbon.  How the other costs stack up is something I don't know, but I'd sure like to!