I'm sure the math was impeccable, but based on the assumption (prevalent back then) that crude oil would never, ever, be under $120/bbl ever again.
That's the problem with assumptions, especially when it comes to predicting how much stuff will cost in a year or two. It's the same thing that caught the mortgage-bundlers in the run-up to the current economic crisis.
“I’m sure the math was impeccable, but based on the assumption (prevalent back then) that crude oil would never, ever, be under $120/bbl ever again.”
Companies these days are full of starry eyed eco-yes men. I was on a project to evaluate the feasibility of biofuels production as my company was thinking of getting in on it. The other 4 reviewers thought it was a great idea, based largely on it being feel good, save the gay whales from global warming, etc. From past experience I knew it was not feasible and was going to be a disaster and said so. The decision was made to steer clear and management is quite happy we avoided the biofuels train wreck.