GM in deal with cellulosic ethanol firm in Illinois

General Motors Corp. Chairman and CEO Rick Wagoner, left, said yesterday that GM is partnering with a new cellulosic ethanol company, Illinois-based Coskata Inc. The announcement was "a sign the race to produce fuel out of waste is intensifying," reports Lauren Etter of The Wall Street Journal. (Los Angeles Times photo)

"Coskata plans to build a pilot-scale plant this year in Warrenville, William Roe, the president and chief executive of Coskata, said in a briefing with reporters last week," reports Matthew Wald of The New York Times. "It has demonstrated all the phases of its technology but has not linked them together in an operating plant, he acknowledged." (Read more)

Coskata "is one of nine cellulosic ethanol companies backed by billionaire investor Vinod Khosla and is one of more than a dozen companies in the U.S. that are rushing to develop a way to efficiently produce cellulosic ethanol," Etter writes. "GM, which is taking an undisclosed financial stake in the company, is making a foray into the cellulosic ethanol field as part of a broader campaign to convince car buyers it is committed to fuel economy and capable of chasing Toyota Motor Corp. in terms of environmental leadership. ... Coskata hopes that allying with GM will give the company brand recognition and an immediate platform for its fuel once it hits the market, which isn't expected to be until 2011 at the earliest."

Cellulosic ethanol is still waiting for a chemical, biological or technological breakthrough to make it commercially viable, but "A protracted bout of high oil prices and significant government support is likely to give the fuel a boost and speed up commercialization," Etter predicts. The winner of that race "will propel fuel and autos to a new level that could achieve Henry Ford's dream of running cars not on petroleum but on a range of farm products like apples, sawdust and weeds. Widespread use of the fuel could dramatically reduce the nation's dependence on foreign oil and reduce greenhouse gases significantly." (Read more)

"GM said it spent a year talking to more than a dozen ethanol producers before deciding to put what Wagoner said was a small amount of money" with Coskata, reports Ken Bensinger of the Los Angeles Times, whose story focuses more on the transportation side. (Read more)