Federal loan programs ill-suited for cellulosic ethanol

Prairie Business
By: Cole Gustafson, Prairie Business Magazine

Cellulosic ethanol has been viewed as the future of the ethanol industry. But producers have encountered challenges obtaining capital to finance the commercialization of new technologies.

Cellulosic ethanol has been viewed as the future of the ethanol industry. But producers have encountered challenges obtaining capital to finance the commercialization of new technologies.

In addition to problems on Wall Street following the collapse of the financial markets, cellulosic biofuel producers have lacked standard benchmarks of performance like those used in grain corn ethanol plants (1 bushel of corn yields an industry average of 2.81 gallons of ethanol). Federal loan programs have also not been tailored to the size and scope of next-generation biofuel plants.
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