In its PR battle, ethanol has a carbon problem. It’s widely debated how much CO2 is emitted during the growing and refining of ethanol. But this much is certain: The debate continues, and it’s been a challenge for the industry.

To find a solution, Tim Burns took a different look at the problem. Rather than seeing the carbon that is emitted from an ethanol plant as waste, he sees it as a commodity. That’s because he’s in the algae business, and algae love to feast on carbon. So on this particular farm in Shenendoah, Iowa, every day is Thanksgiving.

Burns leads BioProcess Algae, which has teamed with Green Plains Renewable Energy, for the world’s first co-located algae-ethanol plant. The carbon emitted during the production process is pumped into bioreactors where the algae will grow. For every unit of algal biomass produced, two units of CO2 are absorbed into the growth process. The dried algae is then used to supply, not a car via biofuel, but livestock via feed.

Burns is interested in making his algae-based business profitable, and right now that’s through creating feed. Eventually, as profits clear room for a large-scale operation....