Biofuels have gained a lot of attention since the implementation of the 2003 European Directive on biofuels. In the Netherlands the contribution of biofuels is still very limited despite several experiments in the past. This article aims to contribute to the development of successful policies for stimulating biofuels by analysing three experiments in depth. The approach of strategic niche management (SNM) is used to explain success and failure of these projects. Based on the analysis as well as recent innovation literature we develop a list of guidelines that is important to consider when developing biofuel policies. (c) 2006 Elsevier Ltd. All rights reserved.