Obama's Algae Racket

Pond scum stinks. And so do the Obama administration's enormous, taxpayer-funded "investments" in politically connected biofuel companies. While the president embarks on a green rehabilitation tour this week to quell growing public outrage about big green boondoggles, the White House continues to cultivate a cozy algae racket. Obama's promotion of algae as a fuel source at a campaign speech in Miami last month caught the nation's attention. But algae companies have been banking on administration support from Day One. In December 2008, when the White House announced the nomination of Energy Secretary Steven Chu, the CEO of Florida-based biofuels startup Algenol, Paul Woods, exulted to Time magazine: "You see this smile on my face? It's not going away. Everyone is really excited by this." The next year, Woods and Algenol — dubbed "Obama's favorite algae company" by Forbes magazine — racked up $25 million in federal stimulus grants from Chu. Say cheese. Yet another algae-based biofuels developer, Sapphire Energy, has absorbed $105 million in stimulus funds and loan guarantees even as doubts about the practicality, efficiency and viability of pond-scum fuels multiply. Sapphire's CEO, Jason Pyle, has donated exclusively to Democratic campaigns, candidates and committees — and his company's website reads like a satellite White House communications office...more