Cellulosic ethanol production falls far short of goal

Production of cellulosic ethanol—fuel made from nonedible plant material such as switchgrass— will reach only 6.5 million gallons in 2010, falling far short of the 100 million gallons mandated by Congress, The Wall Street Journal reported.
The mandate was part of a 2007 congressional bill that set progressive goals for biofuel production. It set the 2011 production goal for cellulosic ethanol at 250 million gallons and the 2022 goal at 16 billion gallons.
The news came as the Interagency Working Group, created by President Barack Obama to assist with biofuel policy, released a report that said the recession and a lack of cooperation among government agencies have hindered biofuel development. The working group suggested government research loans "could be targeted more effectively to support the emerging industry." It also recommended that the EPA test 15% and 20% ethanol fuel blends for light-duty vehicles, lifting the current limit of 10% if the tests are successful, the newspaper reported.
Production of cellulosic ethanol by private companies has recently met unanticipated hurdles, according to The Wall Street Journal. Cello Energy, which was expected by the EPA to produce the bulk of the 2010 goal at 70 million gallons, is now expected to produce only 2 million gallons after legal issues involving investor fraud limited its ability to invest in facilities. The EPA also revised its forecast for the wood-to-ethanol plant of Range Fuel Inc. from 10 million gallons to 2.5 million gallons.