Earlier on people were discussing biofuels. Negative aspects were competition to food production, monoculture hazard, lack of water for irrigation and deterioration of soil. All of those points are valid. nevertheless there are also positive points for a certain amount of bio fuels.
there is plenty of organic waste including sewage sludge, offal, dung, restaurant waste, communal bio waste that can be converted to biogas economically. additionally there may be bio material sources that do not have the drawbacks mentioned above. checkered mentioned algae farming in salt water in dessert regions. there is another nice scheme being proposed in the USA based on bio technology pioneered in a German food science lab.
http://www.greenshift.com/media/greensh ... eactor.wmv
This idea isn't entirely new but the execution in the particular reactor is unique. the biomass to floor area ratio is staggering and exceeds anything seen so far in biofuel farming by magnitudes.
In short I believe that there will be many novel ways to tap into the solar power budget that we will need to use in the future. algae will undoubtedly play a major role in converting solar to bio and chemical energy. this is simply based on the fact that algae grow 100-1000 times faster than any other biomaterial producing organism and they need neither soil nor fresh water in the growth cycle. another reason for my confidence in this is the role algae played in building up most of the fossile enrgy that we are using currently. it is always usefull to look at the nature to see which solutions worked (bionic engineering).