The cellulosic ethanol industry could become the main rival to crude oil during coming years. Cellulosic ethanol is a biofuel which is generated by breaking down cellulose, an organic compound in plants.
Cellulose is the most abundant organic polymer in the world. Scientists in the early 20th century found a way to use it as an alternative form of fuel - ethanol. First commercialized in the early 1900s, acid hydrolysis was, until very recently, the only efficient method of breaking down cellulose into components which could then be fermented by yeast to produce ethanol. By fermenting starches, acid hydrolysis degrades the cellulose and produces carbon monoxide and carbon dioxide.
More recently, scientists have developed another method which uses cellulose enzymes, such as cellulase, to produce carbon monoxide and carbon dioxide. Both methods of converting cellulose into carbon monoxide and carbon dioxide need bacterium Clostridium ljungdahlii to convert the gasses into ethanol.
The biological advantages and potential economic benefits of cellulosic ethanol are promising, but long-term investments must be made for the fuel to become a realistic, cost-effective option.
Cellulosic ethanol production costs have fallen by more than 50 percent during the past decade, down from more than five dollars a gallon in 2001 to $2.65 a gallon in 2011. But to truly compete with crude oil imports today the Department of Energy estimates cellulose ethanol production must reach a target production cost of $1.07 per gallon.
Cellulose ethanol production has significant environmental advantages when compared to crude oil. Cellulosic ethanol emits a reduced amount of fine particulate matter, a harmful component of air pollution, and creates lower levels of greenhouse gas emissions. A 2009 study released by the University of Minnesota estimates the total environmental and health costs of burning cellulosic ethanol per person are 40 to 50 cents less than the costs per person incurred by burning crude oil.
During the past decade, the U.S. government has been actively supporting the cellulosic ethanol industry to stimulate private-sector research. The corn ethanol industry, which has long been the nearest competitor to crude oil, has been heavily subsidized but has been controversial. Net ethanol output from corn is very low, however, and must be heavily subsidized for the industry to thrive.
National government incentives such as those created by the Energy Policy Act of 2005 have provided a platform for the cellulosic ethanol industry to steadily grow in the coming years. If cellulosic ethanol can be produced at $1.07 per gallon, U.S. agricultural job creation could reach 123,000 in 2012 and increase to 807,000 by 2022, according to estimates from the Department of Commerce.
Department of Commerce projections show if bio-refineries can maximize production of cellulosic ethanol, U.S. crude oil imports would be significantly lowered. Though the cellulosic ethanol industry is young and underdeveloped, there is good reason for optimism as we move into the era of biotechnology-dominant research.
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