Sapphire Energy Took The No.2 Spot on the Biofuel Ranking

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Biofuel Digest, an online news site in Miami, ranked the biofuel companies based on innovations and how far along the companies are in commercializing their technologies.Algal biofuel startup Sapphire Energy in San Diego took the No. 2 spot on the biofuel ranking, followed by Madison, Wis.-based Virent Energy Systems, which says it's developing all sorts of biofuels using food and non-food feedstocks. Virent is even working with Royal Dutch Shell to convert sugar in plants into a fuel that resembles gasoline rather than ethanol.

Of the 50 companies on the list, 17 are developing cellulosic ethanol while nine are into algal biofuels. Another nine companies are working on other types of biofuel technologies, including converting trash from landfills to fuels.

Solazyme, another algal biofuel startup, made the top 10. The South San Francisco company has figured out a way to grow algae without sunlight by using natural algae that thrives in the dark, as well as engineering its own strains. The company expects to commercialize its algal oil first as an ingredient in cosmetics, such as anti-wrinkle products

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