China Biodiesel, in a disturbing echo of Biofuels Corporation's basic inability to deliver plant on schedule, has just announced that in the second half of 2007, turnover will be affected by the consequence of delays in building the extension to the plant in Longyan and the delay in completing the new plant in Xiamen.

I don't want to comment (because I don't know) about all the capital sources of China Biodiesel's expansion plans. But the big picture is that if we are moving into a global credit crunch, or at least a period of tighter money, one might want to take a hard look at all alternative energy companies that are engaging in an investment-led rather than organic expansion.

When credit is cheap, some companies are wont to invest and expand like crazy. Other companies are however more sanguine and take a longer view of the business cycle, choosing to expand out of profits. So which of these approaches works best?

Both and none of them - it's just that no strategy works continuously forever. The econosphere is a constantly evolving race without a finish, fuelled by the shifting sands of the capital markets. In other words, what works well today may not do so tomorrow and even lose money the day after.

And I have a sneaking suspicion that the progress in electrical transport just might in a few years, leave biofuels high and dry.