Corn ethanol plants to add cellulosic ethanol capacity
On this mornings earnings call with Verasun Energy Corp they mention that they are looking at adding cellulosic ethanol production to existing corn ethanol plants. At this time they are looking at the technology and know it is a good fit for their facilities given the fact that they receive some cellulosic feedstock at this time.
With over 142 plants online and an additional 67 plants coming online over the next 2 years this is a great opportunity for cellulosic ethanol to take off at these facilities. The DOE is projecting that the technology to make cellulosic ethanol competitive will be here no later than 2012. I would image we are going to see a huge build up from that time for the next 10 years to meet the ambitious targets set by the Federal Government. The
law increases the Renewable Fuels Standard (RFS) to 36 billion gallons of annual renewable fuel use by 2022. And by requiring that nearly 60 percent of the new RFS be met by advanced biofuels, including cellulosic ethanol, it paves the way for commercialization of these vital next generation ethanol technologies.
Verasun Energy is poised to be in the middle of this major build up being one of the largest corn ethanol producers in the country with their merger with Bioenergy. The stock is trading at near 52 week lows. I would imagine this is a great stock to look at for the next few yrs.
