The plating, electronics and metal finishing industries are required by state and Federal laws to remove toxic, heavy metal ions from wastewater streams prior to discharge. The most common treatment is the precipitation of metals as hydroxide sludges which are disposed in hazardous waste landfills. In this project, technology is being developed which can be used to recycle metals in industrial processes and thus eliminate hazardous waste disposal. Methods have been developed for immobilizing algae in silica gels which can be packed into chromatographic columns and used much like ion exchange resins in the removal and recovery of heavy metal ions from solutions. Like ion exchange resins, the immobilized algae can be recycled, but in contrast to chelating ion exchange resins, hard water components (calcium and magnesium) interfere minimally with the binding of transition metal ions. The purpose of the Phase I research was to test the algae-silica product with real industrial wastewaters for metal-removing capa- bilities, to ascertain the best algae-silica composition for metal removal, to test the longevity of the algae-silica material and to provide a brief analysis of the economics involved in using the algal technology in industrial water treatment. The results from Phase I were extremely encouraging and strongly suggest that the process will be commercially feasible. In Phase II, the Phase I studies will be extended by testing other industrial waters and by extending longevity studies. In addition, automatic equipment will be developed which can take the technology to the marketplace. Venture capital has been obtained to accelerate the Phase II activities described here.