The Year in Biofuels

The corn-based ethanol boom turned to bust, as investment in cellulosic ethanol and algae-to-biofuel companies took an upward turn. Obama’s victory was seen as a good sign, but economic woes could hurt an industry that needs lots of money to get to commercial-scale production.

If it’s made from corn, it’s worthy of scorn. If it’s made from weeds or trash, it could be worth cash.

That, in a nutshell, sums up the course that biofuel companies’ fortunes took in 2008. While makers of corn-based ethanol saw their business falter and valuations plummet, companies promising to make ethanol, biodiesel and a host of other liquid fuels from non-food sources like switchgrass, trash and algae raked in the cash.

Whether those “next-generation” biofuel companies will do as well next year is an open question, however. None have so far produced fuel in commercial volumes at prices the market can bear. And whether venture capitalists will continue to have an appetite for investing in getting them there is an open question, given the faltering global economy.

Here, then, is a quick overview of the stories that tracked the trends of the biofuel industry through 2008