U.S. gov't doles out another $23m for cellulosic ethanol

Four companies and a university are to split $23 million in new U.S. federal government funding to help accelerate cellulosic ethanol production.

The U.S. Department of Energy (DOE) is to provide the money subject to negotiation of final project plans and funding, allocating it to five projects focused on developing efficient fermentative organisms to convert biomass material to ethanol.

“These projects will play a critical role in furthering our knowledge of how we can produce cellulosic ethanol cost-effectively,” said Assistant Secretary for Energy Efficiency and Renewable Energy Alexander Karsner. “Ultimately, success in producing cost-competitive cellulosic ethanol could be a key to breaking our nation’s addiction to oil.”

Today’s announcement is a continuation of a month-long blitz by the administration of U.S. President George Bush to show an unprecedented commitment to biofuels. In recent weeks, Bush has posed with alternative fuel vehicles, visited Brazil to talk ethanol and visited enzyme R&D facilities (for instance, see The greening of the U.S. President, and Bush on Biofuel in Brazil.)

Today's funding announcement benefits these five applicants:

• Cargill for up to $4.4 million
• Celunol for up to $5.3 million
• Dupont for up to $3.7 million
• Mascoma for up to $4.9 million
• Purdue University for up to $5.0 million

This money is on top of $385 million the government ponied up for a half dozen other similar projects earlier this month (see U.S. government granting $385M to six cellulosic ethanol plants.)

Commercialization of fermentative organisms is crucial to the success of integrated biorefineries. Fermentative organisms speed refining by converting lignocellulosic biomass material to ethanol.

Projects were selected for the organism’s capacity to convert lignocellulosic biomass to ethanol in process-relevant conditions that would be economical in the commercial market, the DOE said.

Selectees had to "have the ability to produce at commercial scale in the future and have a sound business strategy to market the organism."

Combined with a cost share from industry, more than $37 million could be invested in these five projects. Negotiations between the selected companies and DOE will begin immediately to determine final project plans and funding levels.

Funding will begin this fiscal year and run through FY 2010, subject to congressional appropriations.

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