Most new automobiles built in the US by General Motors and other manufacturers are reportedly equipped to run on 85% ethanol. To fuel these cars, ethanol production must be expanded significantly, according to the Alternative Energy Technology Center (AETE).

With corn priced at over $5 per bushel, current plants spend nearly $2 to produce a gallon of ethanol that sells for $2.60. AETE’s process using common cellulosic biomass will produce ethanol for less than $1 per gallon.

Brown Marks, AETE’s president, said: One dollar ethanol will allow us to operate profitably without government subsidies or incentives. We expect to produce over 100 gallons of fuel per ton of cellulosic biomass which costs about $65 in today’s market. We use a low energy input design to increase efficiency and we can place our plants wherever there is abundant biomass available.