And when you convert algae to fuel you're not taking food off the table, as you are with corn. The impact ethanol has on driving up food prices is the almost exclusive reason why I avoid using it.
The article claims there is no erosion issue - so its better on the environment. I disagree - its entirely possible to grow algae and damage the environment at the same time.
For an interesting story about this, check out "The Oil We Eat" by Harpers (http://www.harpers.org/archive/2004/02/0079915).