Robert Rapier has an important post on the prospects for algal biodiesel:

[Algal biodiesel] will be subject to the Law of Receding Horizons, which simply means that energy sources that require high energy inputs will always see their point of economic viability pushed farther out as energy prices rise. Remember when oil was $20 a barrel, and oil shale was going to be viable at $40 oil? By the time oil got to $100, I was hearing that it would be viable at $120 oil.

Grist relies on the support of generous readers like you to cover the stories that matter most. Thank you for donating.
Secure · Tax deductible · Takes 45 Seconds

Did this article feel meaningful?

Make others like it possible: Give now in under 45 seconds.
Secure · Tax deductible · Takes 45 Seconds

This won’t stop people from throwing money at algal biodiesel. As John Benemann once said to me “This is a good research project, but nowhere close to commercialization.” Somehow, I don’t think this is the reason investors are throwing their money in that direction. They are falling victim to the hype of ‘the next big thing.’