Montana-based algae company GreenShift on Monday announced that it has received a grant of $375,000 from the Montana Board of Research and Commercialization to develop an algae bioreactor.

GreenShift will also provide $125,000 in funds for development.

“We are excited to have this opportunity,” GreenShift CTO David Winsness said in a statement. “GreenShift’s approach is distinct from other algae offerings.”

The company uses thermophillic cyanobacteria, which absorbs carbon dioxide emissions and emits oxygen and water vapor to foster growth. After reaching maturity, the company harvests some of the algae and converts it into biofuels.

The bioreactor that the grant money is going toward will use an industrial source of carbon dioxide to demonstrate how much algae can be produced.

Other companies that focus on producing biofuels from algae include LS9 and Solazyme, although they use different specimen than GreenShift.

Last month, GreenShift received a $38 million investment to produce biodiesel from ethanol plant-derived corn oil.