A San Francisco Bay Area company’s algae-derived biodiesel has successfully powered a car in real-world driving conditions, the first time a biofuel of this type has achieved such a milestone, according to the company.

South San Francisco, California-based Solazyme drove an off-the-lot Mercedes diesel C320 up and down the Californian Coast powered entirely by its next-generation fuel.

The fuel and Mercedes, which had no modifications done to it, are currently in the state of Utah to be publicly unveiled at the Sundance Film Festival, where they will feature in “Field of Fuel,” a documentary by Josh Tikell about renewable fuels.

Analysts widely agree that a next-generation of biofuels derived from non-food feedstocks, such as algae or woodchips, will need to displace current technology before biofuels can significantly replace conventional gasoline.

But no producers have yet to make these fuels at commercially viable volumes and costs.

Founded in 2003, Solazyme recently signed a biodiesel feedstock development and testing agreement with Chevron Technology Ventures, a division of Chevron USA.

The synthetic biology company focuses on the biofuel, industrial chemical, and health and wellness markets and is backed by Berkeley, California-based Roda Group.