There are interesting things going on behind the scenes that is for sure. There don't seem to be any good reasons (environmental or economic) to be subsidizing biofuel production. Only short term political ones.
National interest - I'm not sure. There are plenty of other alternatives why the political focus on one? Bush has cut virtually all funding for other forms of renewable energy in the next budget.
Perhaps they subsidize it because its doomed to failure - and yet in the interim its a vote winner. I'm sure even King Fahd approves.
