Scientists in New South Wales are trying to feed people algae - and run their cars on it too.

The NSW Government and University of Technology Sydney (UTS) are working on a $9 million biotech research hub.

They say it will help develop algae as a cost effective and sustainable resource in products including nutritional supplements, cosmetics, industrial chemicals, fuels and animal feed.

The Deep Green Biotech Hub (DGBH) will use a $1 million government grant aims to help develop the algae industry in a creative precinct to explore the commercialisation of such products.

It adds to UTS’ strong algal track record, which includes the recent establishment of the Centre for Industrialised Algae, the showcasing of concepts for Australia’s first living algae building, and establishing a partnership with GE Healthcare to jointly develop production equipment and laboratories to produce pharmaceutical grade algal products.

Professor Peter Ralph, Director of the UTS Climate Change Cluster (C3) said is it important to bring together science, engineering and industry, both big and small, to understand what is possible in the new bioeconomy.

Funding for the project by the NSW Government will be spread over two years after starting in July 2016.