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Waste to Ethanol:

Ushering in 

a New Industry

Volume 1, Number 4 Fall 1998

A new industry in renewable transportation fuel was

launched in Jennings, Louisiana, where BC International

(BCI) became the first company to dedicate a facility to 

produce ethanol from agricultural residues. At this plant, 

sugarcane waste and rice hulls will be converted to ethanol. 

BCI officials, along with government and industry leaders,

believe that this waste (which is usually either burned or

plowed under), will be a profitable and environmentally

friendly commodity. It often costs nothing, and sometimes

less than nothing. According to Dan Reicher, assistant 

secretary for the U.S. Department of Energy’s (DOE’s) Energy

Efficiency and Renewable Energy, “People are paying to get

rid of these materials.”

Jennings, located in the Jefferson Davis Parish of southwestern Louisiana, has a population of about 12,000. It is

known alternatively as the “garden spot of Louisiana”

because of its rich farmland, and as “the cradle of Louisiana

oil,” because the first oil wells in the state were drilled 

there in 1901. 

“This facility is a giant step towards 

alternative fuels that are domestically 

produced and based on renewable, 

low-polluting energy sources. We can 

look forward to a day when a ton of 

biomass will be traded like a barrel of 

oil is today.” Bill Richardson,

U.S. Secretary of Energy

Blane David Faul/PIX 06544

The first bagasse 

to be shoveled – 

the beginning of 

a new industry.

Bubba Patin (BCI), 

Ric Abel (Prudential Capital

Group), Clinton Norris (BCI),

Mr. Torigoe (Marubeni

America), John Ferrell (DOE),

Dan Reicher (DOE), Stephen

Gatto (BCI), Randy Kob

(Prudential Capital Group),

Ray Katzen (Independant

Consultant)

continued on page 2

Biofuels
BCI chose this location because the plant already 

has a good deal of infrastructure (including natural 

gas and wastewater treatment systems); it is situated

on the river, which provides barge access to the 

Gulf of Mexico and the Mississippi River; and rail

tracks run a quarter of a mile away. Another benefit to

this situation is BCI’s acquisition of equipment from a

shut-down furfural plant, reducing the company’s

start-up costs. 

At the Jennings plant, BCI will produce 20 million

gallons of ethanol per year initially; its long-term

annual goal is 25 million gallons. The ethanol can be

used to fuel cars, generate electricity, and provide raw

materials for the chemical industry. 

BCI will have a positive impact on the local economy.

Representative Chris John (D-LA) says the impact of a

$90 million facility and the attendant 350 construction

jobs is “significant because it pumps a lot of revenue

and jobs into the local area.” Jack Giovo, Jefferson

David Parish economic director, agrees. “The impact

could be phenomenal,” he stated.

The project launch

At 4:00 p.m. on October 20, more than 250 people

watched as the first sugarcane bagasse was shoveled

into the pilot-scale reactor at the 110-acre facility. 

Dan Reicher presented a $5 million check from DOE to

complete the DOE $11 million commitment to 

the project. DOE invested this money for “the good 

of the economy and the good of the environment,” 

he said. 

The plant will use a genetically engineered organism (developed and patented by the University of

Florida) to convert organic waste into ethanol. The

facility will be retrofitted with new vessels, piping,

and controls; equipment will be replaced; a cogeneration facility will be built to create electrical power for

the plant; and the entire operation will be gradually

ramped up. The renovation is expected to take 

12–18 months.

Eric Vaughn, president of the Renewable Fuels

Association, said, “The potential for significant expansion is astounding when you look at the near-limitless

resources available from agricultural crops, waste 

products, and residues.” The groundbreaking was

reported by the New York Times and affiliates, Industry

Week, National Public Radio, Reuters, and several

Louisiana print and nonprint media. 

On October 7, President Clinton signed the final Conference

Report for the 1999 Energy and Water Development

Appropriations. Biofuels seem to be in a good position. The

Conference Report budget is higher than this year’s budget

as it currently stands. But it does contain monies earmarked

for specific projects, which could force DOE to cut certain

research, education, and outreach project areas. “Biofuels

are doing well. The budget is at $31 million this year and for

1999 it stands at $41.75 (36% increase), a very heartening

result,” said Megan Smith, American Bioenergy Association

(ABA). House and Senate report language, however, seeks

to restrict the interaction of industry associations with DOE.

However, The Sustainable Energy Coalition calls it a “politically motivated attack on renewable energy technologies.” 

The Conference Report allocates $1.75 million for the

Gridley, California, rice straw-to-ethanol plant project which,

combined with amounts previously provided, results in a total

of $5 million available for the Gridley project. The Conferees

also recommended $2.5 million for regional programs, and

$4.6 million for feedstock development. The Omnibus bill

added an emergency supplemental $60 million to the

ON THE FEDERAL FRONT

page 2

Mixed Bag –

1999 Federal Budget

Waste to Ethanol: Ushering in a New Era (continued)

“This is a big event for DOE and the Office 

of Fuels Development (OFD). “This is the first 

industrial-sized cellulosic plant, so it involves 

higher financial risks than we’d expect from later

plants. The program has been successful so far 

because organizations such as OFD, the National

Renewable Energy Laboratory (NREL), BCI, 

and some coalitions have worked hard to garner 

support for ethanol.” John Ferrell

Director of OFD
:

There is a great deal of interest in ethanol feedstocks, as

illustrated by the programs that focus on rice straw and corn

starch. Most ethanol now in use is made from corn, and its

net energy gain is about 21%. But according to Charlie

Taliaferro, plant breeder and a regents professor in the

Oklahoma State University (OSU) Department of Plant and

Soil Sciences, perennial grasses such as switchgrass have

great potential as energy crops. Switchgrass is a perennial

and requires as little as one-fourth the irrigation and fertilization than row crops. Sandy McLaughlin, herbaceous task

leader at Oak Ridge National Laboratory (ORNL), estimates

the energy output/input ratio for switchgrass is 4.4, 

representing a net energy gain of 343%. 

Another reason for the dramatic increase in interest for

switchgrass is that 35 million acres under the Conservation

Reserve Program (CRP) might be used for this hearty plant.

Switchgrass is found from Canada to South America and can

grow to be 10 feet tall. U.S. Department of Agriculture

(USDA) figures show that an acre of switchgrass will produce

20.6 times the amount of energy required to make ethanol. 

Some switchgrass programs examine the potential, 

develop test facilities, and design future industrial-size 

production centers. The OSU program is one of many 

currently being run at national laboratories and universities.

DOE funding for switchgrass has been made available to the

five Regional Biomass Energy Programs and the Western

Regional Biomass Energy Program (WRBEP) has three 

programs from this year’s funding awardees that deal

directly with switchgrass. This is in addition to funding

sources that have

been made available

by the states, private

industry, and other

federal funding. 

Among those

funded by WRBEP,

Kansas State

University (KSU) was

awarded $75,000

along with $124,474 

in matching funds.

The funds are intended to evaluate switchgrass production, how

production costs can

be reduced, maximizing feedstock sales,

and attracting the interest of heat and electricity markets

toward these energy resources. KSU will also examine the

ability of switchgrasses to reduce reservoir sedimentation

while improving water quality and production yields. 

The final piece of this effort is to grow switchgrass on 

CRP land. For more information, contact Richard Nelson 

at 785.532.4999.

The University of North Dakota (UND) was awarded

$25,000 to examine the feasibility of locally grown 

feedstocks, aspen trees, and switchgrass, being planted on

marginal farmland and used to produce ethanol. This 

would benefit the state’s two ethanol facilities by providing

more feedstock options. For information, contact Mike Mann

at 701.777.5193.

OSU was granted $75,000 (with $220,093 in matching

funds) from WRBEP to find the best ways to grow, harvest,

transport, store. and process the new feedstocks. These funds

were in addition to other funding. For further information, 

contact C.B. Browning at 405.744.9694. 

IN THE SPOTLIGHT

Fueling the Environment:

Switchgrass Research 

Review

continued on page 4

renewables budget: $42 million is designated for uncosted

balances; $18 million will be used at the Secretary’s discretion. 

In addition to these funds, the Conference agreement

includes $750,000 for the Plumas County ethanol project

and $4 million for the Sacramento Valley ethanol project and

urged the Department to complete the Jennings, Louisiana

plant” (see BCI story on page 1).

The House Renewable Energy Caucus has grown 

from 120 to 133 (61 Republicans; 71 Democrats; one

Independent). This illustrates the growing support in the

Congress for renewables. A Senate Renewables and Energy

Efficiency Caucus was also recently formed, chaired by

Senator Wayne Allard (R-CO) consisting of 14 Senators (five

Republican; nine Democrat).

Senate Conferees: Pete Dominici (R-NM), Thad Cochran 

(R-MS), Slade Gorton (R-WA), Mitch McConnell (R-KY), 

Bob Bennett (R-UT), Conrad Burns (R-MT), Larry Craig 

(R-ID), Ted Stevens (R-AK), Harry Reid (D-NV), 

Robert Byrd (D-WV), Fritz Hollings (D-SC), Patty Murray

(D-WA), Herbert Kohl (D-WI), Byron Dorgan (D-ND), 

Daniel Inouye (D-HI)

House Conferees: Joseph McDade (R-PA), Harold Rogers 

(R-KY), Jim Knollenberg (R-MI), Rodney Frelinghuysen 

(R-NJ), Mike Parker (R-MS), Sonny Calahan (R-AL), 

Jay Dickey (R-AR), Bob Livingston (R-LA), Vic Fazio (D-CA),

Peter Visclosky (D-IN), Chet Edwards (D-TX), Ed Pastor 

(D-AZ), David Obey (D-WI)

page 3

Todd Johnson/PIX 06691
“Our research with switchgrass is part of a larger effort to develop the native

grass as a model herbaceous crop for feedstock in the production of biofuels,”

Taliaferro explained. “It is part of DOE’s National Bioenergy Feedstock Development Program administered by Lockheed-Martin at ORNL.” Taliaferro went on

to say that, “Our objectives are to develop varieties with improved biomass yield

potential and adaptation features that fit various soil and climatic needs. We are

developing a switchgrass germplasm collection for future use in plant breeding

and other scientific investigations.” Biomass yields as much as 20% over the base

populations have been found in some of Taliaferro’s breeding materials, but he

cautions that more testing is necessary to accurately assess relative performance.

Two programs at OSU examine switchgrass for cofiring with coal. In this

capacity, switchgrass is thought to have a capacity as a clean-burning, high yield,

and inexpensive energy source.

Another large-scale program, a 4,000-acre experiment, is being conducted 

by a conglomerate of agriculture, business, education, and government groups 

in a four-county area in south central Iowa. The Chariton Valley Resource

Conservation and Development District, a USDA-chartered nonprofit organization, manages this program. The DOE Biomass Power Program also sponsors it.

The $20 million multi-year project has the support of hundreds of farmers in the

region. As of June 1998, 75% of the acres were planted. Each acre should produce

4–6 tons annually, which will sell for $40–$45/ton. In addition, this program 

will allow the study of impacts on wildlife that would not be possible in a 

small-scale program. 

These and other programs, funded and supported by state, local, and federal

governments; and by the agricultural, educational, and business sectors, make for

a well-founded concept: growing energy instead of mining or drilling for it from

finite reserves at great environmental cost.

news Biofuels

Ethanol Producers and Consumers

(EPAC) Annual Conference

January 25, 1999

Helena, Montana

Contact: Shirley Ball

406.785.3722

National Ethanol Conference

on Policy and Marketing

February 22–24, 1999

Las Vegas, Nevada 

Contact: Bryan & Bryan

719.942.4353 

21st Symposium on Biotechnology

for Fuels and Chemicals

May 2–6, 1999

Fort Collins, Colorado

Contact: Liz Willson

303.275.4457

NONPROFIT

U.S. Postage

PAID

Permit No. 258

Golden, Colorado

Midwest Research Institute

National Renewable Energy Laboratory

National Alternative Fuels Hotline

1617 Cole Blvd., MS 1633

Golden, CO 80401

page 4

DOE/GO-10098-674 For more information, contact the National Alternative Fuels Hotline at 800-423-1DOE.

Produced for the National Biofuels Program, Office of Fuels Development, U.S. Department of Energy

1000 Independence Ave., S.W., Washington, DC 20585-1121

Fueling the Environment Switchgrass Research Review (continued) DID YOU KNOW?

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