According to Greenwire, algae biofuels are washing away, and photosynthesis is a better use of investment dollars. The publication says that while several startups launched into algae fuels over the past half decade, it's not growing... "Often ignorant of algae's biology, these companies stumbled into major physical and engineering hurdles that can derail most of their lofty goals, industry and government experts say."
The opposite is being claimed by market research firm Emerging Markets Online CEO Will Thurmond, who sees algae biofuels and a host of other advanced fuels, growing in global markets. Thurmond has done a lot of studies and speaking on the subject
So which one is true, which one more accurate? I recently heard that a well known author and advocate for biofuels just received $1 billion in investor funds for development of algae biofuels. As far as advanced biofuels go, it still seems to be the most valid and likely successful method as we move away from corn and sugar cane ethanol.