It is possible to produce algae based biofuels, but what is/are the likely limitation(s) of developing countries in promoting this industry? 1. Production of algae based biofuels is possible in seas only and not on continents. 2. Setting up and engineering the algae based biofuel production requires high level of expertise/technology until the construction is completed. 3. Economically viable production necessitates the setting up of large scale facilities which may raise ecological and social concerns. Select the correct answer using the code given below:

Statement 1 is incorrect: Algae-based biofuel production is not limited to seas only. Algae can be cultivated in various environments, including freshwater ponds, wastewater, and closed-loop bioreactors on land. The flexibility of cultivation systems makes it possible to produce algae biofuels in diverse geographic locations.

Statement 2 is correct: Setting up and effectively engineering algae-based biofuel production facilities, especially at scale, requires high levels of scientific and technical expertise, advanced technology, and significant initial investment. Developing countries might face limitations in terms of access to this specialized knowledge, trained personnel, and sophisticated technology until the infrastructure is fully established and operational.

Statement 3 is correct: For algae biofuel production to be economically viable and competitive with conventional fuels, large-scale facilities are often necessary to achieve economies of scale. Such large-scale operations could potentially raise ecological concerns (e.g., significant land or water usage, potential for nutrient runoff if not managed properly, management of invasive strains) and social concerns (e.g., competition for land or water resources, displacement of existing agricultural activities) in developing countries, where resource pressures can be high.

Therefore, statements 2 and 3 are the likely limitations.