Range Fuels, who broke ground on the Georgia plant in November 2007, had received a $76 million grant from the U.S. Department of Energy, as well as an $80 million loan guarantee from the U.S. Department of Agriculture announced in early 2009. The company received only portions of the funds, Bloomberg reported. Both federal commitments were made through an initiative under the administration of former President George W. Bush to find alternatives to corn as a raw material to make ethanol fuels.

Range Fuels had hoped to produce 100 million gallons of cellulosic ethanol from wood chips each year at the biorefinery, but the plant closed in January of this year due to technical problems. About 30 workers were laid off in the shutdown, the Macon Telegraph reports.

The primary alliance goals are to strengthen the credibility among regulators and American consumers of cellulosic ethanol as a cost-effective green transportation alternative; move away from the “food for fuel debate;” provide a leadership role to bring cellulosic ethanol through the production value chain to the consumer market and build awareness of the potential environmental advantages of high yield, low carbon cellulosic ethanol.

“Chrysler Group has long been committed to promoting the consumption of alternative fuels and to delivering flex-fuel vehicles to our customers,” says Reg Modlin, director, regulatory affairs, Chrysler Group.

“ZeaChem is at the forefront of advanced cellulosic ethanol production,” says Jim Imbler, president and chief executive officer of ZeaChem. “Our process delivers a 40 percent higher yield in ethanol from non-food cellulosic feedstocks. Through strategic alliances we can fast-track the large-scale production of cellulosic ethanol. We look forward to collaborating with Chrysler Group to achieve our mutual goals and bring sustainable advanced cellulosic ethanol to consumers’ vehicles.”

“Novozymes’ goal is to enable commercial production of cellulosic biofuel from a wide range of feedstocks,” says Claus Crone Fuglsang, Senior Director of BioEnergy R&D in Novozymes. “Our enzymes have the unique ability to turn wood residues and plant waste into fuel for our cars. Lignol is an industry frontrunner and our work together over the past couple of years has reinforced a shared vision to produce energy and value from wood waste. We look forward to continued improvement under this partnership.”

Lignol’s pre-treatment technology has established them as a leader in dealing with woody biomass and in February 2010, Novozymes launched enzymes that enable commercial production of biofuel from plant waste. The enzymes convert cellulose in biomass into sugars that can then be fermented into ethanol. The parties plan to use Lignol’s industrial pilot plant in Burnaby, B.C. to optimize both Lignol’s process and Novozymes’ enzymes on different types of forestry waste. Later, Lignol plans to construct large-scale biorefineries for the production of cellulosic biofuel from wood chips and forestry residues.

“The progress we have achieved to date with enzymes from Novozymes is extremely promising and a successful outcome of this collaboration should position us to produce cellulosic ethanol from woody biomass profitably and without the need for long term government subsidies,” says Lignol President and CEO, Ross MacLachlan.

The agreement between Lignol and Novozymes formalizes a Memorandum of Understanding between the partners from February 2010.

There are multiple companies out there right now looking to build cellulosic ethanol plants utilizing various technologies, Klann said. “Each one has different barriers, but fundamentally the least common denominator in all those barriers, whether they’re technical or whatever, is the financing.”

Several small, pilot cellulosic plants are currently operating but nothing on an industrial scale. Klann said lenders aren’t willing to finance them because they’re not sure a large facility will work. Klann said the obvious funder of last resort is the federal government. The Department of Energy has a program to guarantee up to 80 percent of a bank loan for a cellulosic plant, but so far DOE hasn’t approved any loan guarantees for cellulosic construction. Even with the benefit of a federal loan guarantee, banks might still consider cellulosic ethanol too risky.

This cooperative agreement is an extension of the grant previously awarded to the company in July of 2008 under a DOE program supporting the development of demonstration-scale cellulosic ethanol biorefinery plants.

The company plans to use the additional funds to support on-going cellulosic technology and process optimization at its Jennings, La. demonstration facility.

Florida Legistlature has allocated $20 million for the plant, which will be located at Buckeye’s Perry, Fla., facility. The groundbreaking is planned for this fall, with an ultimate goal of proving a level of commercial viability that could lead to a full-scale biorefinery at the site.

The project will seek to combine several UF-developed technologies. The plant will employ cellulosic ethanol production technology now licensed to Verenium Corp. and used in demonstration plants around the globe. This will be combined with technology licensed to Myriant to make biobased chemicals with many potential applications, such as biodegradable forms of plastic.

“We’re trying to break our dependence on petroleum. Fuel is a big part of that, but it’s not the only part,” said Lonnie Ingram, the UF distinguished professor of microbiology and cell science who led development of the technology. “Learning how to develop these valuable byproducts not only helps to make cellulosic ethanol more economically feasible, but it takes the environmental impact of cellulosic ethanol and extends it to new areas—like plastic water bottles that won’t take up space in a landfill for thousands of years.”

Headquartered in Memphis, Tenn., Buckeye is a leading producer of cellulose-based specialty products. The company owns and operates a wood cellulose plant in Perry in addition to cotton cellulose manufacturing operations in Memphis and Americana, Brazil.