Consumers to Pick Up Tab for Off-Target Cellulosic Ethanol Industry

GreenTechMedia.com
by: Michael Kanellos
December 16, 2008

It's been talk, talk, talk all the time in the cellulosic ethanol biz. Meanwhile, it looks like the industry won't meet its production requirements.

Cellulosic ethanol is turning out to be an underachiever so far.

The 2008 Energy Independence and Security Act set a goal of producing 100 million gallons of cellulosic ethanol in the U.S. by 2010 and 250 million gallons by 2011, but a survey conducted by David Woodburn of ThinkEquity strongly indicates that the industry is likely to miss its mark.

Woodburn expects only 28.5 million gallons of cellulosic ethanol to be produced in the U.S. in 2010, leaving a 71.5 million gallon gap.

"Congress put this 100 million figure out there and I'm not sure they had any idea about the capacity in the industry," he said.

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