Department of Energy to Fund Two Cellulosic Biorefinery Projects With The Goal of Competing With Corn Based Ethanol

The U.S. Department of Energy (DOE) today announced the selection of two small-scale cellulosic biorefinery projects in Park Falls, Wis. and Jennings, La. for federal funding of up to $40 million over five years. These projects will further President Bush’s goal of making cellulosic ethanol cost-competitive with corn-based ethanol by 2012, and help reduce America’s gasoline use by expanding the availability of alternative and renewable transportation fuels.

“To meet our growing energy demand we must continue to research and advance clean energy solutions to improve our energy security, reduce greenhouse gas emissions and clean, sustainable cellulosic biofuels do just that,” DOE Assistant Secretary Andy Karsner said. “These biorefineries will create fuel from non-food based sources to power our vehicles and reduce our dependence on foreign oil.”

On average, commercial-scale biorefineries process roughly 700 tons or more of non-food feedstock per day, with an output of approximately 15-30 million gallons a year (MMGY) of biofuels. These smaller-scale facilities will input approximately 70 tons of feedstock per day – with outputs ranging from 1.5 to 6 MMGY. The selected small-scale projects will produce liquid transportation fuels such as cellulosic ethanol from wood, energy crops and agricultural waste products.

These two biorefinery projects are the final round of selections for DOE’s competitive small-scale biorefinery solicitation. Earlier this year, DOE selected seven other projects, comparable in size and scope, to receive up to a total of $200 million. With the addition of the two new projects announced today, the selected biorefinery projects will receive up to a total of $240 million in DOE funding, subject to appropriations, over the next five fiscal years. Once federal funding is combined with industry cost share, more than $735 million will be invested in these nine projects, over the next four to five years.

Today’s announcement is part of more than $1 billion in investment that DOE has announced for multi-year biofuels research and development projects. These small-scale projects complement the Department’s investment in commercial-scale biorefineries. The full-scale biorefineries focus on near-term commercial processes, while the small-scale facilities will verify integrated operations at a reduced size with diverse feedstocks using novel processing technologies.

Cellulosic ethanol is an alternative fuel made from a wide variety of plant materials or non-food based feedstocks, including agricultural wastes such as corn stover; forest wastes such as saw dust and forest thinnings; and energy crops, such as switchgrass. In studies conducted by scientist at DOE’s Argonne National Laboratory, compared with conventional gasoline, ethanol produced from cellulosic materials requires as much as 90 percent less fossil energy to produce and has the potential to reduce greenhouse gas emissions by more than 86 percent over the lifecycle.

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