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:

1. Statement 1 is incorrect. While algae can be cultivated in seas (marine algae), large-scale production for biofuels is also possible, and often preferred, in controlled environments on land (continents), such as open ponds or closed photobioreactors, using freshwater or wastewater. 2. Statement 2 is correct. Establishing efficient algae cultivation systems and downstream processing for biofuel extraction involves complex engineering and requires a high level of expertise and advanced technology. Access to this expertise and technology can be a significant limitation for developing countries. 3. Statement 3 is correct. To make algae-based biofuels economically viable and competitive with fossil fuels, production needs to occur at large scale facilities. Setting up such large-scale facilities can raise significant ecological concerns (e.g., land use, water consumption, nutrient runoff) and social concerns (e.g., land acquisition, impact on local communities), which are important considerations, especially in developing countries. 4. Thus, statements 2 and 3 represent likely limitations.