Biocrude, Anyone?

This is interesting. A Khosla-funded startup, Kior, is working on a catalytic process that converts cellulosic biomass to mid-chain hydrocarbons, rather than alcohol. They're in talks with oil companies. Think that re-use of existing refinery infrastructure might cushion the blow for Big Oil?

Of course, it's only an engineering curiosity at this point--they're making grams of hydrocarbons in the lab. But this one's more promising than a lot of the other biofuel startups.