The future of next-generation biofuels has taken a downtown in the past two years, as production won't come close to Congresses mandated target of 100 mill gallons by 2010, the Zanesville Times Recorder reported. The first biofuels projects received millions of dollars in grants from the Bush administration, however, developers are now struggling to get capital for new construction. While the recession has discouraged some investors, federal tax credits have little attraction to investors who don't have enough income to be taxes in the first place.

(Zanesville Times Recorder, November 24, 2009)

(http://www.zanesvilletimesrecorder.com/…)

DTN: At a cellulosic biofuels conference last week in Washington, industry players blamed the government for difficult federal loan guarantee requirements. Next-generation biofuel plants cost an estimated four or five times as much to build as corn ethanol plants, and both the Energy and Agriculture departments are not doing much business on the advanced biofuels loan guarantees. Biofuel industry leaders say the rules for loan guarantees, make it almost impossible for biofuels producers to meet, since the government prefers long-term contracts from buyers for their fuels, and such contracts do not exist. (Cheryl Anderson)