Thursday, January 17, 2008

House Ag Committee Chair says cellulosic ethanol a decade away

Feedstock sources; Distribution networks require development to make a successful transition to biofuels


By Tom Doggett

WASHINGTON (Reuters) - It will be at least a decade before technological breakthroughs allow ethanol fuel to be produced commercially from farm and forest waste like wood chips, switchgrass and corn stalks, the chairman of the House Agriculture Committee said on Tuesday.

The Bush administration has a much quicker 2012 target date for moving U.S. ethanol production away from its current main feedstock -- corn -- to cheaper agricultural waste and other so-called cellulosic sources.

However, Rep. Collin Peterson said that goal probably won't be met.

"I think that is optimistic. I think we are 10 years away," said Peterson, speaking at the Reuters Global Agriculture and Biofuel Summit.

"I really think the more I look at this whole cellulosic issue, there is a lot bigger problem to overcome here than people realize in terms of the feedstocks. We have a lot of work to do in that regard," he said. "I'm not sure cellulosic ethanol will ever get off the ground."

A new energy law requires U.S. ethanol production to increase from 9 billion gallons this year to 36 billion gallons by 2022.

Peterson said with more ethanol plants coming online, the one thing he knows for sure is more pipelines will be needed to move the fuel supplies.

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