I was doing work at CSIRO on algal biofuels before CSIRO pulled the plug on my work and related work.
> Are there any oil companies working on biofuels?
Yes. Shell for starters. In addition, some oil companies will accept oil from biofuels from third-party sources as a replacement for crude oil as input into their refineries.
> They found that there is a class of plants that can grow in deserts on salt water and has superb biomass potential.
Which one? This sounds like a rehash of Jatropha, which looked extremely promising as a desert plant that could produce high concentrations of biofuels. That is, it looked promising until somebody realised that, although it grew in the desert and was very salt tolerant, it absorbed enormous amounts of water, which for large scale production in desert regions rules it out completely.
If they’re talking instead about cyanobactreria (also known as blue-green algae) then this will grow in highly saline water in the desert, but as a biofuel it’s also known that evaporation of water from algal ponds is enormous and so far no-one has come up with a cheap method for stopping the evaporation without also stopping the growth of algae. This would also require genetic manipulation of the algae and enormous tracts of land. It’s also unable to utilise the carbon in wastewater so can’t be used for water purification. And it’s difficult to harvest the oil.
The best source of biofuel is still oil palm Elaeis guineensis – which because of it environmental friendliness is of course hated by environmentalists.