Ethanol Blog
Todd Neeley DTN Staff Reporter

Wednesday 03/10/10

DOE Hires Company to Watch Biomass Projects

The U.S. Department of Energy signed a five-year, $21 million contract with R.W. Beck subsidiary, McLean-based Science Applications International Corp., to watch progress being made on DOE-funded biomass projects, according to the Washington Business Journal in Arlington, Va.

DOE has provided 18 grants to help in the design, construction and operation of ethanol biorefinery pilot and demonstration projects.

R.W. Beck will serve as DOE's independent engineer on the projects, providing program management, technical and financial due diligence, and construction and operations monitoring expertise.

(Washington Business Journal, March 9, 2010)

(http://washington.bizjournals.com/…)

DTN: The DOE's move here probably will ease at least some criticism coming from critics. Some critics have said the federal government has invested millions of dollars in other similar projects without a payback. Most notably cellulosic ethanol development has been slow to materialize, although the U.S. government has invested hundreds of millions of dollars in grants. (Todd Neeley)

Posted at 10:05AM CST 03/10/10 by Todd Neeley
Comments (3)
Really can't be any worse then all the billions the government has wasted on other things , bail outs etc. Where's those watch dog groups? The cellulosic part of this post,I agree with they have spent alot on grants and have had few results, I think these plants are a long ways out, their contribution towards ethanol production will be limited. With the high production cost and up and down margins, it seems like pumping money into cellulosic ethanol is a long shot. Lets get the E 15 ruling a go ahead, get the plants that are out there on sustainable margins, and go from their. The road is long, lets see where it leads, before branching off and falling off a cliff.
Posted by GWL 61 at 9:01AM CST 03/11/10
I very much agree with the first comment with respect to E15 but in at least one company's case celulosic ethanol is not that far out. Verenium partnered with BP has had a demonstration level plant running for some time now. They have land in Florida and a agro business partner to grow the crops (Lykes Bros) All they need is the loans to build the plant (about 300 million). They have said they could have it up in running in 2011.
Posted by Earl Retherford at 10:14AM CST 03/11/10
That BP/Verenium project is supposed to produce only 30 mgy for $300 million invested. At that rate the industry needs to find idiots willing to donate (not loan, there is no way this plant will ever be profitable) $1.5-2 trillion to satisfy the 2022 RFS. Also, why does BP need a $300 million loan? They have billions in the bank. Answer - they want an outside party to take the risk. If they really believed in this project they would simply build it.
Posted by THOMAS ELAM at 9:24AM CST 03/12/10
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