As promised, we got a chance to sit down with Wes Bolsen, the CMO and vice president at Coskata, during last week's Platts Cellulosic Ethanol Conference in Chicago. We wanted a little more information on the $1/gallon number for the Coskata process "cellulosic" ethanol (yes, Bolsen pointed out that it's really carbon ethanol, but he's OK with people using the cellulosic term, even though he prefers to call it "next generation" ethanol). About half of the cost is set aside for feedstocks, the rest is for things like utilities, maintenance, water, and nutrients. The Coskata process does not require buying enzymes, there's no pre-treateament, and there's no high-pressure chamber. Eliminating these items simplifies the process and, therefore, reduces the running cost to less than $1/gallon. I'm not sure if the fee for the microorganisms is included in this estimate or is part of the plant building fee (which is not part of the $1/gallon).

Because the Coskata process does not require sugars/cellulose, it can use input sources like trashed plastic bottles, tires, landfill gas, and steel mill gasses. Bolsen said that some estimates say 40 or 50 billion gallons of fuel could be created each year from these sources. Oh, and if you think ethanol will die out when we move away from liquid fuels, check out Bolsen's idea to use ethanol to produce hydrogen for fuel cellls. Want to hear more? Go ahead and listen in (13 min):



Our travel and lodging for this event was provided by GM.

Thursday at the Platts Cellulosic Ethanol Conference saw three of the cellulosic ethanol plant builders give updates on their strategy for converting biomass to fuel and where their companies are today. The speakers were Wes Bolsen, CMO and vp at Coskata, Christopher Veit, senior marketing manager, biomass, for Novozymes, Inc., and Murray Burke, president and CTO of SunOpta. The short version of each of their speeches: we're doing amazing things, you should really take another look at our technology. The longer versions are spelled out after the jump.

When Coskata came out of stealth mode in January, the company announced that a 40,000 gallon-per-year commercial demonstration plant using a proprietary microbial cellulosic ethanol production process would be in operation by the end of 2008. Greentech Media reports that the biofuel start-up has begun construction on this demo plant, but we still don't know where. The location should be announced later this month, and the fuel from the plant will be used by GM at the Milford Testing Grounds and, possibly, by NASCAR. Coskata chief marketing officer Wes Bolsen also told Greentech Media that the tiny test lab at the company's Warrenville, Illinois location has helped double the efficiency of the ethanol-producing microorganisms since January. By late 2010-early 2011, a 100-million-gallon-per-year plant should be operational and a number of firms are bidding on the right to build it.

[Source: GreenTechMedia]

To get a little more information out of Coskata about this morning's announcement of a partnership with ICM to build the first commercial cellulosic ethanol plant using Coskata's proprietary process (past details on Coskata are here), we tracked down Wes Bolsen, chief marketing officer, business development at the company. Bolsen was an executive at ICM in his previous life, so he is very familiar with what ICM is all about (for now, this is building a lot of corn ethanol plants in the U.S.) and why the company is a good fit for Coskata.

Bolsen said that ICM, like the rest of the ethanol industry, knows that corn ethanol's days are numbered and that cellulosic biofuel is the way to go. After doing their homework, ICM decided that Coskata had the right process to move to commercialization with. Wes said that the relatively small footprint of a cellulosic ethanol plant - about 20 acres - will mean these plants have the potential to pop up all over the world, wherever there is some feedstock (like the municipal waste) and space. While the Coskata process can handle a lot of different kinds of input material, each plant would likely be built to handle only one type. Therefore, the design that is best suited for paper mill waste could be built next to a paper mill whereas a plant that works well with corn stork or corn fiber could be erected alongside a currently-operating corn ethanol plant.

Now for the unknowns: the location of this first plant has not yet been announced, nor what type of feedstock it will use. Exactly when it will be finished is also uncertain, but late 2010 or early 2011 is the target. The hope is to then have two more plants running by late 2011 or early 2012 and expanding from there to the point where Coskata is responsible for producing billions of gallons of cellulosic ethanol to the market every year. We'll keep watching.

You can listen to my chat with Wes here (5.3 MB, 11 min).

UPDATE: As Wes said in the comments below, he's taking issue with my characterization of what he said about the future of corn ethanol, the struck-out above. I didn't mean to give the wrong impression of what he said, so I'm going to explain why I wrote what I wrote. Wes said that ICM considers itself at the forefront of the ethanol industry, especially corn-based ethanol. But, when I asked about the move to cellulosic ethanol and away from corn, Wes said that, "At some point, everyone knows that that will stop." That's where my characterization came from. You can hear it at minute three of the audio clip. You can read Wes' clarification below.

General Motors vehicles and biomass materials are two things that you can find pretty much anywhere on the planet. GM and Coskata Energy announced a partnership today at the Detroit Auto Show that certainly hints at a future where you we will find biomass materials fueling GM vehicles in a lot of places, maybe pretty much anywhere.

If you've heard the Coskata name before, it's likely from the name of the Coskata-Coatue Wildlife Refuge. The Coskata energy company, no relation, was started in July of 2006 with funding by ethanol-magnate Vinod Khosla's Khosla Ventures as well as Advanced Technology Ventures and Great Point Ventures. Why was all this big money interested in Coskata? Because Coskata claims they will soon reach one of the holy grails of the new energy movement: cheap cellulosic ethanol that can be created, well, pretty much anywhere in the world. The short version of this story: Coskata Ethanol can make ethanol from biomass, municipal solid waste and any other carbon-containing material and GM, which has taken an equity stake in Coskata, wants to promote the heck out of this ability.

More details than you can possibly devour in one sitting after the jump.