The environmental advantages of renewable fuels could hardly be more evident than now, when the consequences of risky deepwater oil drilling are fouling the water and shorelines of the Gulf of Mexico.

Yet the federal government is not doing its part to encourage development of cellulosic ethanol -- the next generation of biofuels.

Currently, most ethanol is made from kernels of corn. Cellulosic ethanol would use cornstalks and corn cobs, as well as switchgrass and other plants that can grow on poor soil and require little water.

Research done at the University of Nebraska-Lincoln and elsewhere has shown that cellulosic ethanol would have a much higher return of energy than corn-based ethanol.

Recent advances have made the production of cellulosic ethanol commercially viable right now, scientists at the Abengoa Bioenergy pilot plant near York told the Journal Star editorial board during a tour in November.

Abengoa is partnering with Mid-Kansas Electric Co. to develop a cellulosic ethanol and power plant in Stevens County, Kan., that will use about 2,500 tons a day of biomass. The plant, built with the help of a $76 million U.S. Department of Energy grant, aims to produce 75 megawatts of power and 15 million gallons of ethanol annually.

There are about 25 cellulosic ethanol projects under way in the United States, according to Ethanol Producer Magazine.

Unfortunately, investors are wary of putting their money in construction of cellulosic ethanol plants because of the risks associated with any fledgling industry.

The Environmental Protection Agency recently rolled back the target goal for production of cellulosic biofuels in 2010 from 100 million gallons to the more realistic 6.5 million gallons.

If federal officials want faster progress toward greater production of cellulosic ethanol, more federal incentives are needed to spur additional commercial development.

A 25-million-gallon cellulosic ethanol plant planned near Emmetsburg, Iowa, by POET LLC won't be built unless the federal government approves loan guarantees, according to POET officials. They hope to have an answer by the end of the year.

Robert Dinneen, president of the Renewable Fuels Association, eloquently described the choice facing the nation in his keynote speech at a recent ethanol conference in St. Louis.

"The choice between the dangers of our addiction to oil and the promise of American renewable fuels is as clear today as the contrast between the blackened estuaries of the Gulf Coast and the sparkling green fields of rural America."

source: journalstar

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