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A partnership between Eastern Kentucky University and manufacturer General Atomics could plant the seeds for a new and sustainable fuel production industry in Kentucky.

The deal, announced at the state capital, will establish the Eastern Kentucky University Center for Renewable and Alternative Fuel Technologies, or CRAFT. By using algae techniques to process cellulosic materials that are available in Kentucky, officials say the project could drive sustainable fuel production and benefit the state’s agriculture industry.

“President-Elect Obama has made it clear that the development of alternative energy will be a centerpiece of his economic plan,” said EKU President Doug Whitlock. “Kentucky’s current economic situation makes this a critical time for the initiation of such a project.”

General Atomics, headquartered in San Diego, California, specializes in diversified research, development and manufacturing in defense, energy and other advanced technologies. The company’s affiliate, General Atomics Aeronautical Systems, produces the Predator family of Unmanned Air Vehicles.

Whitlock praised the efforts of Congressman Ben Chandler and Governor Steve Beshear in forging the partnership, which links EKU with an international business leader. “This project is different in that it will be focused on production of biodiesel and ultimately bio jet fuel using non-food cellulosic materials in a process that will utilize algae to convert the biomass into bio-oils,” he said. “The research at EKU will determine both the optimal ‘recipe’ of cellulosic material and the economic feasibility of the project.”

Whitlock said the project will help Kentucky farmers looking for cash crops to replace tobacco while making the state a leader in an emergent technology.