For four straight years I have attended the Infocast Cellulosic Ethanol Summit in Washington, DC, the latest occurring just this week. The annual Summits are signposts along the evolutionary path of an innovative technology. The 2007 conference presentations featured new and better ways of making cellulosic ethanol. Research and development had proven the technology, and people were awakening to the challenges of biomass harvesting and logistics. The national economy was strong.
In 2008 several conference speakers announced the construction of pilot plants, and some had even started operating. A few companies were working with biomass suppliers and solving logistics problems. In spite of an economic downturn, industry excitment was growing. At last year's conference, more companies had entered the race. Technologies were getting more efficient and costs were being reduced. Several companies promised that commercialization is getting close. However, they cited a lack of capital as growing concern.
The concern was valid. The overarching theme of this year's conference was the lack of capital. Technology and biomass logistics have continued to mature and costs have been reduced. POET Project LIBERTY and several other companies are now standing on the rim of the commercialization canyon, needing a federal loan guarantee parachute before taking the leap. However, as the press has covered over the past few months, federal loan guarantees for biofuels projects are slow in coming.
But today I continue to have optimism. Range Fuels received a loan guarantee from the USDA. Fulcrum Bioenergy and the DOE agreed on a "detailed indicative term sheet" for a DOE loan guarantee. And POET Project LIBERTY continues taking positive steps toward a DOE loan guarantee. LIBERTY's technology and biomass logistics are ready. POET will start construction when it receives the federal loan guarantee.
Cellulosic ethanol has the potential to eliminate--not just reduce, eliminate--America's dependency on foreign oil, while improving our environment and creating jobs. Our industry's evolution must, and WILL, march forward.