And subsidies are very likely under the Obama administration for anything and everything that can make a claim to being "green". Look what he wants to do to the auto companies - force them to produce and you to buy small electric or hydrogen powered cars whether the technology currently exists or not.
Your arguments also hold for electric cars. The electricity has to come from somewhere - probably from burning more coal which will release more carbon dioxide than burning gasoline. But massive subsidies are going to be available for electric cars anyway.
1) Government will no longer have the luxury of being incredibly stupid and Obama won't want it to be 2) Solazyme's feedstock will be more efficient from a local pollution and greenhouse gas perspective - with or without carbon mandates or subsidies - used as fuel for electrical generation rather than via Solazyme's expensive process.
Maybe Solazyme will have another hype cycle or two - I'm sure the VCs will want to dump it on bag holders. But it doesn't make sense with or without subsidies, does it?
1) Go to Obama's web site and look at his plan for cap and trade for carbon emissions. Looks like he plans to be incredibly stupid.
2) If you think rationality is going to come into these decisions take a look at ethanol. Massive government subsidies even though it takes many more BTUs to produce a gallon of ethanol than you get when you use it. And even though ethanol production uses huge amounts of clean water and good farmland.
Depending on the government to make sensible "green" decisions is not realistic.