USDA Funds First Commercial Cellulosic Ethanol Plant
Last week, outgoing Agriculture Secretary Ed Schafer announced the USDA's approval of the first-ever loan guarantee for a commercial-scale cellulosic ethanol plant. The loan guarantee, authorized by the 2008 Farm Bill, guarantees an $80 million loan to Range Fuels, Inc. to build a 20 million gallon-per-year plant in Georgia. Once fully operational in 2010, the plant is expected to support 63 permanent jobs.
Cellulosic ethanol is the holy grail of the ethanol industry. Currently, commercially produced ethanol comes from food grains like corn and sugarcane. The increased demand for these grains by ethanol producers has led to a hotly disputed controversy over whether such fuels have increased food and feed prices worldwide.
Cellulosic ethanol technology manufactures fuel from non-food plant products. The Range Fuels project, for example, will use wood chips as its source material. Many other promising plant materials are being evaluated for their fuel-making potential, from rapeseed to algae. Bringing a commercial cellulosic plant online is an important step, not only because it is positive news for the biofuels industry but more importantly, it represents a crucial milestone on the road to a carbon-free energy supply.
Post authored by David J. Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.
