After creating multiple bio distillers with pipes and power connected - they attempt to function but it appears as if the mechanic is not finished. Several problems arise when using them. First a "resource shortage" message indicates that there is no slime even when you have an abundance of slime not only in storage but also laying around everywhere from the little puff fish as indicated in the top right "resources" display that shows you how much of your resources are available. When that issue isn't happening the duplicants will go and gather up like 10 x as much slime as necessary at once and go and throw it in a single bio distiller even when you have multiple distillers. Then the bio distiller will cease to function and the slime disappears with no algae production as if the required slime was not just collected and delivered. The duplicants will keep doing this and the problem will keep repeating as long as slime is available. Algae is hardly ever produced but when I was able to get it to function the display that pops up when you click on an object for the details and stats indicates that no algae is being produced even when the bio distillers are functioning. Very little algae is produced when it does manage to work. Like 10 kg at a time which is a major waste of time, ultimately leading the duplicants to their eventual demise due to the finite amount of algae available in the map forcing the player to lean on more advanced oxygen production methods such as through a finite water supply.
Simply get bio distillers up and running and observe. When I noticed the "bug" I had 4 or 5 distillers lined up in a slime biome powered by a couple of coal generators with a few large batteries as well as a single pipe collecting the contaminated water run off from the distillers dispersing the contaminated liquid to a contaminated water source. I would assume that is a pretty standard set up.