The U.S. Department of Energy announced today that it would invest up to $7.7 million in four cellulosic ethanol projects as part of the White House's goal of making the biofuel cost-competitive with gasoline by 2012.

The agency said the projects would demonstrate efficient methods to eliminate contaminants generated during the thermochemical conversion process of turning grasses, stover, the non-edible portion of crops and other materials into biofuel.

With today's news, the DOE said it has announced over $1 billion in funding for biofuels research and development projects in 2007.

"We are committed to expanding the sustainable production and use of biofuels and these projects will help develop cleaner methods for turning a wide variety of feedstocks into fuel," said DOE secretary Samuel Bodman.

"Successful completion of these projects stands to redefine the way we produce America's fuels and follows the President's call to end our dependence to oil."

Emery Energy in Salt Lake City, Iowa State University, Research Triangle Institute in North Carolina, and Southern Research Institute in Alabama will each be getting funding from the DOE.

Combined with the industry cost share, the agency said more than $15.7 million is slated for investment in the four projects.

The DOE said the funding is scheduled to begin in 2008, running through 2010, subject to Congressional appropriations.