… and it’s a Go for Poet’s Cellulosic Project
Yesterday Poet Energy announced that it has a conditional DOE commitment for a $105 million loan guarantee for the cellulosic ethanol plant it plans to construct in Emmetsburg, Iowa. That’s two days after I posted (below) that the company was waiting on just such an outcome. Thanks for reading my blog, Steven Chu!
Poet has been working with DOE to secure more funding for this plant, which will be co-located with an existing corn ethanol plant owed by the company. In 2007 it received a grant from DOE that was supposed to help out through the first years of design and construction. It appears that the details for that plant haven’t changed – it will produce 25 million gal a year from corn cobs, leaves, husks and some stalks. It is scheduled for completion in 2013.
Following these projects requires a fairly strong memory. When I first wrote about the project in 2009, it was to see what had happened since the 2007 grants were issued. Poet’s project was looking like a pretty sure bet. But clearly the loan guarantee was a necessity – Poet was originally going to have the plant running this year, but was waiting on more financing.
What’s interesting is what the company has been doing in the meantime. A few numbers give you a sense of the scale of a cellulosic ethanol plant. Poet built a 22-acre holding area – called an integrated stackyard – just to store the biomass delivered by farmers. The collection has begun – 85 farmers brought 56,000 tons of biomass to the site last year. That’s less than one-fifth of what the plant will use up in one year.
Farmers will glean about 20-25% of the waste biomass from their fields to feed the mill. Each acre would provide 1 ton of biomass. To provide the yearly allotment for the plant would require 300,000 acres of harvested corn farmland. Poet has been working with soil scientists to study the impact of the gleanings on soil quality – and so far have found it to be “consistent with good soil management.”