Algal biofuel is an emerging energy source that has the potential to improve upon the environmental benefits realized by conventional biofuels and contribute to the biofuels mandate set by the Renewable Fuel Standard. While there has been much research into producing fuel from algae, a commercial operation has not yet been built. This paper examines theoretical models of innovation and two case studies of innovation in energy technologies in the United States, first generation biodiesel and solar photovoltaics (PV), using a technological innovation system (TIS) framework to provide relevant lessons and inform the path forward for commercializing algal biofuel. The case study analysis identified five event types as being the most influential to the innovation process: changing expectations, technology development, demonstration projects, policy targets, and government subsidies. There have been some demonstration projects for algal biofuel, and it does fall under the mandates laid out by the Renewable Fuel Standard (a policy target) but currently does not receive production subsidies. If societal expectations and national priorities regarding fuel and energy sources are aligned with the potential benefits of algal biofuels, providing subsidies for algal biofuel production could significantly contribute to advancing its commercialization process. The main finding from the case study analysis is that government interventions had a high level of influence in the innovation processes of first generation biodiesel and solar PV and will likely also be key factors in the commercialization of algal biofuel. The feasibility of these interventions is an area for future study.