Study considers viability of cellulose ethanol market

“The Market for Cellulose Ethanol,” a 68-page report marketed by Energy Business Reports, Anthem, Ariz., analyses how cellulose ethanol is produced, how cost-effective it is, growth drivers promoting the use of ethanol over other fuels and barriers to market.

Among the most recent barriers to crop up was an Oct. 5 announcement by Underwriters Laboratories Inc. that it was suspending authorization for manufacturers to use UL markings on components for fuel-dispensing devices that specifically reference compatibility with alcohol blended fuels that contain greater than 15 percent alcohol (i.e. ethanol, methanol or other alcohols).

Underwriters Laboratories is a not-for-profit product safety certification organization in Northbrook, Ill. It has never certified a dispenser for use with E85, according to its Web site. (E85 is a blend consisting of 85 percent ethanol and 15 percent gasoline.) The organization said in a release that it enacted the suspension until updated certification requirements are established. UL said research indicates that the presence of high concentrations of alcohols within blended fuels makes the fuels significantly more corrosive, which might ultimately degrade the dispenser.

UL said in its release that its engineers are reviewing current research and meeting with industry and government officials to gather the information required to draft revised certification requirements. The organization said it will co-sponsor a technical forum on the topic with the U.S. Department of Energy, to be held Nov. 1-2.

Last week Missouri Gov. Matt Blunt asked UL to certify and approve E85 fuel dispensers, reported the St. Louis Business Journal.

"Underwriters Laboratories' refusal to establish a timetable for approval of an E85 pump jeopardizes renewable fuel's place in the market and our efforts to move Americans toward energy independence," Blunt said in an Oct. 25 statement, according to the Business Journal. "We must act now to ensure that ethanol remains a viable fuel source in our state and nation."

Meanwhile, Energy Business Reports said in a press release that the report on the market for cellulose ethanol focuses on steps the U.S. government is taking to promote ethanol use, including tax incentives, funding for research and development, funding for technology and other measures.

Cellulose ethanol can be produced from various types of biomass, including waste from urban, agricultural and forestry sources. Unlike normal ethanol, which is made from sugars and starches, cellulose ethanol is produced from cellulose, which is largely a byproduct. It can be derived from agricultural residues such as: wheat straw or grass seed straw; forestry residues such as sawdust; municipal solid waste; pulp and paper mill sludge; and other cellulose biomass feedstocks using an acid hydrolysis technique, according to Energy Business Reports. However, it is only recently that cost-effective technologies for producing ethanol from cellulose have emerged, according to Energy Business Reports.

Today’s vehicular engines can all utilize a blend of gasoline with 10 percent ethanol (E10), and modified engines can run on up to 85 percent ethanol (E85).

When blended with gasoline, ethanol increases the octane rating (decreasing engine stress) as well as overall fuel economy, according to Energy Business Reports.

By the end of 2005, the annual capacity of the US ethanol sector topped 4.4 billion gallons and consumption reached 2.7 billion gallons, according to Energy Business Reports.

If this trend continues and policy incentives support ongoing growth, ethanol demand is expected to grow at the rate mandated by the 2005 Energy Bill and reach 7.5 billion gallons by 2012, according to Energy Business Reports. However, there are some technological and economic obstacles to the full commercialization of ethanol production, Energy Business Reports noted.

Energy Business Reports describes itself as an energy industry think tank.