Money | biofuel Biofuel Boom Runs Out of Gas By Drew Nelles Posted Aug 27, 2009 12:49 PM CDT Copied Josh Taylor, front, a chemical engineer at Gevo, Inc., pours biogasoline into the tank of a Jeep Rubicon in Englewood, Colo., on Tuesday, Nov. 11, 2008. (AP Photo/David Zalubowski) Once considered a win-win for the environment and energy independence, America’s biofuel industry is sputtering to a halt, the Wall Street Journal reports. Thanks to the recession, lower oil prices, and government delays, two-thirds of American biodiesel refineries—dozens of plants—are idle, and companies across the country are shutting down. The crisis could scare investors away from newer technologies more promising than much-maligned corn-based ethanol. "If your investors are losing money in first-generation biofuels, I guarantee you they'll be more reluctant to put money into more biofuels, including next-generation fuels," an observer says. In one high-profile case, a company that was supposed to supply 70% of the Environmental Protection Agency’s biofuels allegedly defrauded investors, making it all but impossible for the government to hit its green targets. Read These Next Her blood isn't compatible with anyone else's. Rubio says the fate of Iran's conversion facility is what matters. Some of the most explosive Diddy allegations are dropped. Fan who taunted Ketel Marte's mom has been banned by MLB. Report an error