According to an Associated Press report, Poet, the nation’s top ethanol producer, says it is has reduced its cellulosic ethanol production cost during the past year from $4.13 per gallon to $2.35 per gallon. The current wholesale price of corn ethanol is about $2.00 per gallon. It is not clear whether Poet is including the various subsidies it already receives for cellulosic ethanol, including a $1.01 per gallon tax credit on cellulosic ethanol. Also, the Company plans to produce only 25 million gallons of cellulosic ethanol each year at its plant in Iowa, but the Renewable Fuel Standard (RFS) mandates the use of 100 million gallons in 2010.
Filed under: Biofuels, Cellulosic, Climate Change, Ethanol, Food vs. Fuel, RFS | Tagged: Cellulosic, EPA, Ethanol, poet, Renewable Fuel Standard, RFS
I work at POET. The $2.35 does not factor in any tax credits, and POET doesn’t receive any subsidies. It’s a straight-up cost. The number does factor in equipment maintenance and repair, wages and benefits, depreciation, etc.
And yes, our first cellulosic ethanol plant will be 25 million gallons. We have 26 plants, and after scale up we will look at the option for every POET plant and license the technology for others to use as well.
The Renewable Fuel Standard does not call for one company to completely satisfy the cellulosic ethanol supply, so I’m not sure where your “only” 25 million gallons comes from, but we are excited to play a significant role in meeting that standard.