The release of $2.8m in federal cost share for DOE ‘budget period 1’ reflects that EdeniQ and Logos have satisfied all of the conditions associated with the cooperative agreement awarded by the DOE in December of 2009. The DOE is expected to release the remaining $17.7m in federal cost share as part of its ‘budget period 2’ in the third quarter of 2010.

The funds will be used to expand and upgrade EdeniQ’s current cellulosic test plant in Visalia, California to a CCM pilot plant processing two-tons of cellulosic biomass per day. The CCM pilot plant will employ a portfolio of biological, chemical and mechanical technologies designed to allow bio-refiners to cost-effectively add cellulosic production to their current operations.

Larry Gross, CEO of EdeniQ, said: “Our corn-to-cellulose migration technologies will allow today’s corn ethanol producers to add corn stover (leftover stalks, cobs and leaves) and switchgrass (a native, perennial prairie grass used as an energy crop) to their current operations far faster, and for far less money, than building ‘green field’ cellulosic plants from the ground up.

“We’re taking the same approach in Brazil with a solution that will allow today’s sugarcane ethanol producers to make biofuels from bagasse.”