Sioux Falls, S.D.-based Poet LLC will receive more federal help in its effort to commercialize ethanol production from corn cobs, according to the Chicago Tribune.

The U.S. Department of Energy has awarded Poet with two funding increases -- about $6.9 million this year and $13.2 million next year -- to bring the DOE's total commitment to $100 million on the project.

Poet has plans to begin commercial production of cellulosic ethanol at a corn-based ethanol plant in Emmetsburg, Iowa by 2011, including some 25 million gallons from corn cobs.

(Chicago Tribune, Sept. 28, 2009)
(http://www.chicagotribune.com/…)

DTN: Since private banks and other investors have virtually shut off investments to ethanol projects, it has become clear that cellulosic-ethanol projects will continue to need an influx of cash from the federal government and other public sources. Ethanol's recent struggles have led to many traditional sources of funding to shy away from the industry. Considering that cellulosic ethanol comes with a much higher risk of losing investments, it's no wonder companies like Poet have had to rely on federal funding sources to finish the project. (Todd Neeley)