WASHINGTON – POET, the nation’s largest corn-based ethanol producer, announced earlier this week that it has sharply reduced the cost of producing cellulosic ethanol from corn cobs and that it expects to compete favorably with gasoline in two years, The Washington Post reports.
POET, which produces 1.5 billion gallons of ethanol each year, said that it has reduced the cost of producing ethanol from corn cobs from $4.13 a gallon to $2.35 a gallon, mainly the result of trimming capital costs and using an improved “cocktail” of enzymes.
The company added that it can use the byproduct lignin as fuel and that it would provide sufficient energy needs for its plant, as well as 80 percent of the energy required by a conventional corn-based distillery that produces twice as much ethanol.
"Two years ago I would have told you this was a long shot," said POET CEO Jeff Broin. "Now I'll tell you that we will produce cellulosic ethanol commercially in two years."
The news bodes well for farmers, who stand to generate extra income from the technology. According to Broin, an acre of cornfield could produce 480 gallons of corn-based ethanol and 55 gallons more from processing corn cobs, leaves, and husks.
However, the advance would still not meet the congressional mandate that refiners use 16 billion gallons of cellulosic ethanol by 2025. Broin said that the nation could produce 5 billion gallons a year of cellulosic ethanol from corn cobs today and perhaps 10 billion gallons eventually.
Broin has urged the Environmental Protection Agency to relax its rules limiting the amount of ethanol that can go into regular gasoline. The limit is currently 10 percent while ethanol makers have appealed for an increase to 15 percent.
NACS fully supports the use of renewable fuels but does not endorse the ethanol industry’s push to allow blends higher than E10 due to equipment compatibility issues and potential retailer liability.