Grass crop receives EPA backing on ethanol production

The US Environmental Protection Agency (EPA) has ruled that a giant reed variety, with a high ethanol potential, qualifies as a cellulosic renewable fuel.

Arundo donax has been reported as yielding three times as much ethanol per acre as corn and this decision makes it a potential replacement of corn for renewable transportation fuel in the Midwest.

Many scientists and environmentalists believe Arundo to be a ‘dangerous invasive crop’ however, but the EPA has begun moves to address the concern.

Another company watching this debate keenly is technology and engineering business Chemtex. It is planning an ethanol refinery in North Carolina, slated for 2015, of which Arundo is a critical element of its development.

Chemtex want to allegedly use 6,000 acres to grow Arundo on farms situated near the plant site. But, to secure further financing, the company needs production contracts in place with farmers as soon as possible.

The new ethanol refinery is backed by a federal loan guarantee to the tune of $99 million (€76.8 million).