The only drawback I can see is whether or not the “biomass” crude can be co-mingled in the current delivery system of natural crude (pipelines, etc.)
If it needs a stand alone delivery system from crude production to refining, their costs will be much to high to make a real difference.
I’m guessing KiOR is developing this process to challenge Ethanol as a combustion fuel additive.
(I wish I had the money to convert my 1994 Tracker to NatGas!)
I found an article that answers your question... should be in the post right above this one.