U.S. advanced biofuel sector finds lenders wary

Reuters
Thu Oct 29, 2009 5:54pm EDT

WASHINGTON, Oct 29 (Reuters) - U.S. lenders are leery of putting money into cellulosic ethanol and other new-generation biofuels due to the recession and an industry shakeout, Agriculture Department and biofuel leaders said on Thursday.

That is one reason near-term production of advanced biofuels is unlikely to meet targets set by a 2007 energy law, said William Roe of Coskata Inc, which has a demonstration-size biomass plant in Pennsylvania.

Several witnesses at a House Agriculture subcommittee hearing on the future of new-generation biofuels pointed to difficulties in securing credit.

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