DOE Doles Out Bucks for Biofuel Producers

Written by Rachel Barron

Novozymes said Wednesday it scored $12.3 million from the U.S. Department of Energy to develop enzymes that would help cut the cost of producing cellulosic ethanol.

Enzymes are used to help break down the starch of cellulose feedstocks, such as switchgrass, corncobs and woodchips, and turn them into sugars. The sugars are then fermented and distilled to become ethanol. The government expects something in return for its investment. The deal calls for the Danish company to increase the efficiency of the enzymes by two folds.

To accomplish this goal, Novozymes will match the DOE's funding, bringing the total amount invested into the project to $25 million. The company said it will have the cost-cutting enzymes ready for the commercial market by 2012. ...