The problem of a system like this is that too many of the developers are looking for a government handout in the form of subsidies in order to finance their research. And since the researchers ideas don't fit any the preconceived ideas of the special interest groups that our politicians have so closely tied their careers to that anyone with a new idea has no chance of getting the funds they want.

The second problem is that so much of our energy industry is so heavily government (federal or state) regulated that getting that industry to change the way they do business is almost impossible. Our government leaders are so locked (ideologically and financially) into wind, solar and corn ethanol that if any other alternative shows up that threatens their way of thinking they can't or won't even give the idea a fair trial.
 

Convert hippies into Soylent Diesel.
 

I agree that government regulation is a shackler. We need the market to develop free and clear. Let DuPont, Monsanto, ADM, or startups like this one create new products and let the best one(s) win. Government should stay the hell out the way.
 

Whatever it takes, but we've GOT to do something. This is bullsh*t.