Haynes and Boone's Newsroom
Paul Dickerson Says Valero Investment in Ethanol Plant a Key First Step
01/12/2010
Valero to Invest in Ethanol Plant
Wall Street Journal
Oil refiner Valero Energy Corp. plans to invest in one of the first commercial-scale plants to convert wood into ethanol, an unusual vote of confidence by a major oil company in the emerging technology used to produce so-called cellulosic biofuels.
The investment may also be a sign that nascent cellulosic-ethanol technology is turning a corner after years of struggling to commercialize new technology, secure financing and drive down operating costs.
Paul Dickerson, who headed the Energy Department's Office of Energy Efficiency and Renewable Energy under President George W. Bush and is now a corporate lawyer, says the deal may be "the first key indicator" that the fuel could be produced at a price competitive with ethanol made from corn.
In 2006, Mr. Bush set out a goal to make cellulosic ethanol "practical and competitive within six years," as he said in his State of the Union address that year. But the industry has fallen well short of ambitious Congressional production targets.
In 2011, the government expects about 3.9 million gallons to be produced, far less than the 250 million gallon target.
This article has been excerpted from the Wall Street Journal. To view the full text, click here.