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Coskata Ethanol breakthrough announced at Detroit International Autos Show, Partnership with GM

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Rick Wagoner, Chairman of General Motors, announced at the Detroit North American International Auto Show (NAIAS) that GM has taken an equity stake in an ethanol manufacturer called Coskata, and that Coskata has developed a breakthrough process for producing ethanol that is far more efficient than traditional corn processes.  In fact, the process is so much more efficient Coskata believes they can produce ethanol for less than $1.00/gallon. 

If Coskata can deliver on this claim, it's hugely important.  Ethanol has a lower energy density than gasoline, so it takes more gallons to go an equivalent number of miles.  This means that ethanol needs to be much cheaper than gasoline to make the fuel cost between ethanol and gasoline equivalent.  If ethanol can retail for near $1.00/gallon, it will for the first time cost less to travel 100 miles with ethanol than with petroleum gas. 

In addition to lowering costs, important to drive consumer acceptance and adoption, the more efficient ethanol production process promises to also be better for the environment.  :-) 

Here's an excerpt from the news release published at Coskata's web site:

"Using patented microorganisms and transformative bioreactor designs, Coskata ethanol is produced via a unique three-step conversion process that turns virtually any carbon-based feedstock, including biomass, municipal solid waste, bagasse and other agricultural waste into ethanol, making production a possibility in almost any geography. Coskata’s process technology is ethanol-specific and enzyme independent, requiring no additional chemicals or pre-treatments; environmentally superior, reducing carbon dioxide emissions by as much as 84% compared to conventional gasoline; and has the ability to generate 7.7 times as much energy as is required to produce the ethanol, compared to corn ethanol which generates approximately 1.3 times as much energy according to Argonne National Labs." 

A separate news release from Coskata and GM says that their first ethanol plant using their newly announced process will be open in 2011. 

Congratulations to Coskata and GM! 

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