...There are a plethora of research avenues, some at commercial pilot pant phase. Here a good place to overview:
http://www.greencarcongress.com/cellulosic_ethanol/index.html
Yes there are many near that stage. I hold shares in one of the most advanced (stock symbol VRNM) which is one of four to receive major DoE grant and last month became partner with BP with BP paying $90million ($24.5e6 now and 20.5 in 3 transfer in next 12 months) for rights to production technology and BP paying much more later if all goes well, including cost of the commercial plant etc. (They now operating pilot plant, 1.4million gallons/year. Plant cost $60 million).*
I.e. BP will also fund the commercial scale plant when it its design is finalized and make both expertise in global distribution and management available to this relatively tiny company. I bought them as Diversa (before they merged with Celunol) because I liked their approach to the problem (dissecting the guts of termites to take advantage of nature cleverness) and because if even cellulosic’s alcohol never can compete economically with tropical sugar cane alcohol, at least they would still exist because they sell many enzyme products to industry, including major food processors, and to farmers (something mixed in to cattle food mainly)
I have lost about 2/3 of my initial investment on paper. It has always been a back up "plan B" for me as I have financial interest more than order of magnitude greater in Brazil's second largest sugar/alcohol producer, San Martinho. I.e. I continue to think in the end, nature's system, tropical sugar cane, will beat economically anything man can make up. She usually does. (The best cloth is still cotton, best shoes are leather, best houses are baked clay, best water is from spring, etc.)
I thank you for the recent link to yet another idea. The one which seems most promising to me is the "no light algae" approach which feeds the algae sugar now as its energy input and can be grown in compact tanks, not large 2D solar energy collectors. I.e. a "divide and conquer" approach. No cost for field of pipes, pumps and plastic bags for birds to punch holes in etc. and no structures in the field - let sugar cane capture the solar energy cheaply and then crush it but feed the sugar water, not to yeast, but to "GMed algae" for production of oils. (Diesel fuel)
I will go study your link now. Thanks again, but you have not yet supported your claim (I think) that switch grass is energy efficient; however, energy efficiency is not the important consideration for ANY solar system. Economics is, as there is more than enough land (like deserts or even oceans) where the solar photons are now just becoming heat. (They will, in the final analysis, always just turn to heat, but we can get useful work from them in the process if we are smart enough.)
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*One think I also like about them is they are paying attention to the supply problem - working with framers in several souther states etc. A commercial scale plant cannot just assume their input will come from some saw mill. An assured supply, under contract, with lots of land collecting the sunlight is required. We are talking about 100s of years in a steady state system, not one-time rape of some near-by forest.