Biofuel Boom a Bust

Yet another reality check for the Obama lala land administration. WSJ:

The global credit crisis, a glut of capacity, lower oil prices and delayed government rules changes on fuel mixes are threatening the viability of two of the three main biofuel sectors -- biodiesel and next-generation fuels derived from feedstocks other than food. Ethanol, the largest biofuel sector, is also in financial trouble, although longstanding government support will likely protect it.

Earlier this year, GreenHunter Energy Inc., operator of the nation's largest biodiesel refinery, stopped production and in June said it may have to sell its Houston plant, only a year after politicians presided over its opening.

Would that we could dump those subsidies--but the politics of Iowa has a death grip on them. And wouldn't you know it, another biofuel producer was convicted of fraud:

Backed by venture capitalist Vinod Khosla, Cello was expected to supply 70% of the 100.7 million gallons of cellulosic biofuels that the Environmental Protection Agency planned to blend into the U.S. fuel supply next year. The alleged fraud will almost certainly prevent the EPA from meeting its targets next year, energy analysts say.

Now their lobbyists want to throw good taxpayer money after bad--as if we can afford this.

And since we're on the subject of fraud--what about fraudulent science at the EPA--and their silencing an honest scientist?