Julia Poska | November 20, 2019
An Iowa plant that produces ethanol from cellulose found in corn residue announced Tuesday that it will stop commercial operations in February.
Cellulosic ethanol is widely regarded as a more environmentally friendly version of the plant-based fuel because it provides a use for waste products like cobs and stalks rather than an incentive to put more land into industrial corn production.
Typical ethanol, made from corn kernels, has an “energy return on investment” (EROI) of less than 2:1, most sources agree. This means that the fuel supplies only about as much energy as was put into growing and refining the product. Researchers believe EROI for cellulosic ethanol could be somewhat higher than for corn-based ethanol, but still much lower than for other energy sources.
Despite the apparent benefits, cellulosic ethanol has been slow to take off. The Renewable Fuels Association 2019 Ethanol Industry Outlook report indicated that cellulosic sources provide only about 3.4% of U.S. ethanol production capacity.
The Des Moines Register reported that personnel of the plant, owned by POET, blamed the “pause” in production on the U.S. Environmental Protection Agency for granting Renewable Fuel Standard exemptions to oil refineries in recent years. The RFS sets minimum levels of biofuel that gasoline and diesel must contain, so exemptions reduce what would otherwise be a guaranteed demand for biofuel.
Cellulosic ethanol production has lagged behind forecasts since it first entered commercial purview, however. In 2007, the Bush administration called for 100 million and 250 million gallons of commercial cellulosic ethanol production in 2010 and 2011 respectively. Actual commercial production did not begin until 2012, according to MIT Technology Review.
In July 2018, ethanolproducer.com thought national production of cellulosic ethanol could top 15 million gallons, far behind the EPA’s goal of 7 billion gallons for that year.
The POET cellulosic ethanol plant in Emmetsburg, Iowa opened in 2014, according to the Register. The facility cost $275 million to build and received about $120 million in state and federal incentives. The plant has a capacity to produce 20 million gallons of cellulosic ethanol annually, according to POET, and has spent years working on “optimizing” the production process to reach full capacity.
The plant will continue doing “research and development” on cellulosic ethanol while producing regular corn ethanol at another plant next door, according to the Register. Another cellulosic ethanol plant in Nevada, Iowa closed in 2017, the Register also reported.