'holy grail' of biofuels

Ethtec on road to 'holy grail' of biofuels

By Adam Stephen

Friday, 30/04/2010

An Australian company, half owned by cane farmers, is well on its way to reaching what's known as the 'holy grail' of biofuels.

The race is on around the world to perfect cellulosic ethanol - which simply stated is fuel produced from agricultural waste.

Ethanol Technologies Limited has been working on it for years, and recently cracked the code for turning wood chips into a syrup of sugars, acid and water.

Mr Carey says their process can covert woodchips into sugar in about seven minutes - competing technology (enzymatic) takes days to achieve the same outcome.

Phase 2 is now to separate the sugars, which will be used to produce ethanol, and could be completed by March, 2011.

He says cellulosic ethanol is considered the holy grail of biofuels because it's much cheaper to produce.

Ethtec has received a $3 million Federal Government Grant under the AusIndustry's Climate Ready Program to help complete Phase 2.

Ethtec is owned by MIS company Willmott Forests and a group of cane farmers.

In this report: Robert Carey, director, Ethanol Technologies Limited