South Dakota Fuel Company Investing in Non-Food Cellulosic Ethanol Production

The main concern of legislators, farmers and families about ethanol subsidies around the world is the accompanying rise in prices. Many observers are concerned that increasingly large percentages of crop yields given to fuel instead of food production will negate savings at the pump for ethanol-enriched fuels. Sioux Falls, South Dakota-based Poet Energy has recently received funding from the Department of Energy to solve this problem by using corncobs and kernel fibers for ethanol production.



Poet Energy has undertaken an effort called Project Liberty that would expand this method of cellulosic ethanol production to a national scale. Poet has received $80 million in grants from the Department of Energy and the fuel company has raised $200 million to fund the project. The long-term goal for Poet involves proving the effectiveness and economic viability of its refining process beyond the laboratory. This commercial production would need to be carried out by facilities around the country to fulfill the objectives of Project Liberty.

Poet’s researchers have stated that they can use corncobs that would otherwise die in fields as well as fiber from kernels to produce ethanol without placing strain on food supplies. The company is committed to a $4 million pilot facility in Scotland, South Dakota that will be operational by the beginning of 2009. The company’s investors and researchers intend to push forward with a larger plant in the state by 2011 if the pilot refinery produces adequate results.

The initial goal of the Scotland facility would be 20,000 gallons of cellulosic ethanol per year. Readers should know that the Department of Energy projects production of ethanol nationwide would reach 10 billion gallons per year by 2009. Poet’s efforts should be commended given the fact that most politicians seem more concerned about gas prices than grocery bills. The initial drop in the ethanol bucket that is created by Poet’s pilot facility needs to be followed by a torrent of innovation and production to make a difference.

Every consumer should hope that we turn to non-food stock like sugar cane residue, corncob if the United States plans on using ethanol heavily in the future. It would be impossible to produce enough ethanol from food crops to fuel the entire country. Poet and the Department of Energy may need to shore up emissions issues with ethanol production but they are taking the right approach to creating ethanol. The fuel infrastructure from the Atlantic to the Pacific should some day feature cellulosic ethanol, hydrogen, plug-in electric and solar stations to avoid the dark cloud of petroleum from overshadowing the health of our economy.

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