DSM to produce cellulosic ethanol in US

Royal DSM and Poet have collaborated on a cellulosic ethanol producing plant, located in Emmetsburg, Iowa.

The joint venture will see the two companies oversee ethanol production at the $250 million (€180 million) plant, which will produce about 12 million gallons of cellulosic ethanol this year alone, DSM chief executive Feike Sijbesma says.

Cellulosic ethanol production should start at the US plant by July as the government contemplates reducing the amount of renewable fuel that oil companies will need to buy.

It is expected to make approximately 20 million to 25 million gallons per year and will reach full production by the end of 2014.