The major accomplishment of the past nine months' work was the identification of a microalgal species which can be grown in the system on a 12-month basis without temperature control. The most promising species identified to date is a strain of platymonas sp. This strain grows rapidly at temperatures from 20/sup 0/ to 34/sup 0/C, and at salinities from 1.5 to 3.5%. Neither the lower temperature limit nor the lower salinity limit of the strain are known at this time. A factorial experiment designed to determine optimum growth conditions indicated that the optimum culture depth was 10 cm, the optimum pH about 7.5, and the optimum flow rate about 30 cm/s. A major discovery was that diluting the culture every third day greatly enhanced production. In this dilution mode daily yields averaged 46 g/m/sup 2/ ash-free dry weight (AFDW) over a one-month period, and photosynthetic efficiencies averaged 11% (based on visible light energy). The former figure is over twice the best long-term yields achieved in microalgal mass culture systems grown exclusively on inorganic nutrients.