03/02/07 Biorefinery Funding.

Energy Secretary Sam Bodman has announced Department of Energy funding for six biorefinery projects the government hopes will commercialize cellulosic ethanol - and dramatically change the way the nation fuels its motor vehicles. According to Bodman - the Energy Department is investing up to 385-million dollars in the six biorefineries over four years in an accelerated bid to make ethanol from plant and other waste cost-competitive with gasoline. Co-products may also include electricity. Bodman says the grants - leveraged with private sector funding - will go to plants in Kansas, Iowa, Idaho, Florida, Georgia and southern California. BODMAN: This is a big deal. This effort and the effort that these companies are undertaking potentially could change the way we run our entire transportation sector in America. It's a big deal. Bodman says the effort - if successful - will change automobiles - and with increased fuel efficiency - help reach the President's goal to cut U.S. gasoline consumption by 20-percent by the year 2017. Bodman says corn ethanol is still on top for now - but notes corn's getting expensive. And while the Secretary says new hybrids will boost corn and ethanol yields per acre - he says the U.S. must start looking at other sources. BODMAN: For sure, we cannot continue to use corn indefinitely in the future so we are very excited and pleased about the prospects for cellulosic ethanol. Still - Bodman says it will be hard to get beyond 12 or 15-billion gallons and reach the President's 35-billion gallon goal without cellulosic ethanol and new technologies. But just how much of that 35-billion gallons will come from ethanol compared with other alternative fuels? Bodman says that's all up to the market. BODMAN: The markets are going to decide that. The markets will decide whether each of these projects that are here; I think it is fair to say that cellulosic ethanol, if all of the projects that are standing up here or represented by these gentlemen are successful, we're going to have 35 billion gallons of cellulosic ethanol from that sounrce. Though farm interests fully expect corn will continue to be a main feedstock - with plant waste for ethanol.Meantim e - DOE still plans to choose two or three academic institutions for biorefinery research centers. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.