GAO releases report criticizing failure of DOE cellulosic ethanol loan guarantee program

Biofuels Digest
July 14, 2010 Jim Lane

In Washington, the Government Accountability Office issued a report documenting a series of shortcomings in the Department of Energy’s administration of the federal loan guarantee program for energy projects that reduce greenhouse gas emissions.

Tom Buis, CEO of Growth Energy commented, “The Energy Department’s loan guarantee program is not working properly and that is especially true for cellulosic ethanol. Since the Department of Energy began administering this program six years ago, there is yet to be a single loan guarantee issued to a producer of cellulosic ethanol…just yesterday, the Environmental Protection Agency revised the nation’s cellulosic ethanol production target for next year from 250 million gallons to less than 20 million gallons. The single biggest reason for that revision is a lack of financing available to cellulosic ethanol producers, many of which are ready to build plants if funding can be secured.”

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U.S. GAO Report