Innovation in emerging energy technologies: A case study analysis to inform the path forward for algal biofuels

Algal biofuel is an emerging energy source that has the potential to improve upon the environmental benefits realized by conventional biofuels and contribute to the biofuels mandate set by the Renewable Fuel Standard (RFS). While there has been much research into producing fuel from algae, a commercial-scale facility has not yet been built. We examine two case studies of energy technology innovation in the United States, first generation biodiesel and solar photovoltaics (PV), using the technological innovation system (TIS) framework to provide lessons and inform the path forward for commercializing algal biofuel. We identify five event types that have been the most influential to these innovation processes: changing expectations, technology development, demonstration projects, policy targets, and government subsidies. Some algal biofuel demonstration projects have occurred, but despite falling under the mandates set forth in the RFS (a policy target), algal biofuels do not currently receive production subsidies. The main finding from the case study analysis is that government interventions have significantly influenced the innovation processes of first generation biodiesel and solar PV and will likely be key factors in the commercialization of algal biofuel.

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