Poet, the largest US ethanol producer, announced that cost reductions achieved over the past year of operating their cellulosic ethanol pilot plant have exceeded expectations in their drive to commercialize the process.
The company said reductions in energy usage, enzyme costs, raw material requirements and capital expenses have reduced the per gallon cost from $4.13 to $2.35 over the course of the past year, and the company’s goal is to be below $2 by commercial plant start-up. The company did not give a date for commercial operations.
"While we still have some challenges ahead, I can say unequivocably that Project Liberty will be commercially viable by the time we start up the plant,"Jeff Broin, CEO of Poet, said.
Project Liberty is Poet’s planned 25 million-gallon-per-year cellulosic ethanol plant in Emmetsburg, Iowa.
Dr. Mark Stowers, Senior Vice President of Science and Technology for Poet, said that there are some promising areas for future cost reductions in the cellulosic production process.
"There are still several opportunities to make the process more efficient," Dr. Stowers said, "particularly in fermentation. Additionally our enzyme partners have committed to significant additional cost reductions."
Poet’s pilot-scale plant is in Scotland, S.D. and has produced approximately 20,000 gallons of cellulosic ethanol since it started producing on November 18, 2008.
In Related News…
U.S. ethanol production could eventually top 14.5 billion gallons a year, up 16% from output capacity at the beginning of 2009, the US government said on Wednesday.
Read the Reuters report at the link below.
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