GM signs agreement to use cellulosic ethanol

Coskata´s technology uses micro-organisms and bioreactor designs to produce ethanol from practically any renewable source, including refuse, old tyres and plant waste.

"We are very excited about what this breakthrough will mean to the viability of biofuels and, more importantly, to our ability to reduce dependence on petroleum," said GM Chairman and CEO Rick Wagoner.

Beating first generation bioethanol
Coskata's process is an attractive alternative to the controversy surrounding grain-based ethanol production.

According to Argonne National Laboratory in the United States, which analysed Coskata's process, for every unit of energy used, it generates up to 7.7 times that amount of energy, and it reduces CO2 emissions by up to 84 percent, compared with a well-to-wheel analysis of petrol. Coskata says its process uses less than a gallon of water to make a gallon of ethanol, compared to three gallons or more for other common processes, and that its technology can be used anywhere in the world where there is a carbon-based feedstock available.

GM will receive the first ethanol from Coskata's pilot plant in the fourth quarter of 2008 to start testing in its vehicles.

Sooner than anticipated
One of the criticisms of cellulosic ethanol – the kind of ethanol being produced by Coskata – is that commercially-viable development was believed to be still several years away. However, the link-up with GM suggests that the fuel could be available in commercial quantities much sooner than anticipated. Coskata CEO Bill Roe said the company will be producing 50 to 100 million gallons of ethanol per year by 2011, including the two years it will take to build the plant.