Alternative energy company KiOR, which aimed to lead the nation into a future in which fuel manufactured from wood chips, grasses and other plant materials would replace petroleum, now faces dire financial difficulties that may threaten the company’s future. (See earlier story on KiOR: “Beyond Ethanol: “Drop-In Biofuels Squeeze Gasoline From Plants.”)

In a March 17 report filed with the U.S. Securities and Exchange Commission, the Pasadena, Texas-based company’s executives admitted that they have “substantial doubts about our ability to continue as a going concern.” In order to continue operations past April 1, the company said it must finalize a deal to obtain an additional infusion of as much as $25 million from Sun Microsystems co-founder Vinod Khosla. Just