Exxon says algae fuels project may cost billions

HOUSTON, July 14 (Reuters) - Exxon Mobil (XOM.N) said on Tuesday said final development of its new research project to make fuels from algae will cost billions.

"We need to be realistic," Emil Jacobs, vice president of of research at Exxon, told reporters on a conference call. "This is not going to be easy, and there are no guarantees of success."

The world's largest publicly traded company plans to spend $600 million over the next five or six years to develop biofuels from algae with its partner Synthetic Genomics Inc (SGI), a privately held company focused on gene-based research. (Reporting by Anna Driver in Houston; Editing by Derek Caney)