A generic story (literally), but timely indeed, as algae seem much
more innocuous than nuclear fission.

Chlamydomonas is a common genus that I have seen growing in eutrophic
waters and also observed oil bodies within their cells.
So there may be some truth to the story.

http://www.greenprophet.com/2010/01/08/15784/algae-biofuel-iran/
note: a convincing first line of the fourth paragraph


here also is the published article:

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V24-4XT7YWK-5&_user=1535420&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1158595553&_rerunOrigin=google&_acct=C000053610&_version=1&_urlVersion=0&_userid=1535420&md5=c9b88a5e437c167cbe4307d83bb0c749


Morowvata et al. 'Chlamydomonas as a “new” organism for biodiesel
production' Bioresource Technology
Volume 101, Issue 6, March 2010, Pages 2059-2062


cheers,

SJE