Cost of cellulosic ethanol production dropping

Ethanol giant POET says the cost of producing cellulosic ethanol at its pilot plant in Scotland, South Dakota has declined sharply in the past year.

POET says its per gallon cost dropped from $4.13 to $2.35 since the pilot plant start-up in 2008.  The company’s goal is to be below two dollars by the time it begins commercial production of cellulosic ethanol at its Emmetsburg, Iowa ethanol plant.  That plant is slated to begin production in late 2011, using corn cobs as the feedstock.

POET says reductions in energy use, enzyme costs, raw material requirements and capital expenses are behind the decrease in the cost of production.  Officials say the cost reductions exceeded their expectations.


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  1. [...] producer announcing that their production costs have been cut in half over the past two years, the EPA will make a ruling on whether or not to raise the limit on ethanol blends from 10 to 15%.  As Congress looks at health [...]

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