In a new study, researchers have shown that growing perennial grasses to make celluline rather than using corn stover or sugar cane is better for the environment because it increases soil health and stores much more carbon in the soil, thereby reducing greenhouse gases.

Current first generation ethanol is produced by fermenting the starch in corn kernels. This has become a controversial source of biofuel due to food vs. fuel concerns and the relatively low energy gain from the whole process.

But celluline represents a true departure from these concerns in that significantly more liquid fuel energy can be harvested from non-food portions of the plant — the stems and leaves. Celluline is still in the research and development stage, but many people have hung their hats on it as the holy grail that will replace corn ethanol and bypass concerns over food vs. fuel and energy gains (PDF).

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The three ethanol groups — Growth Energy, the Renewable Fuels Association and the American Council on Renewable Energy — painted a bit of a doomsday picture for the Big Three in their letter, suggesting that the only way for the auto industry to avoid “dire consequences” is to “bring resourceful, innovative and practical solutions” to the table.

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In reality, however, corn ethanol was set up for a crash before the faltering world economy gave it the impetus to go over the edge. I’m not suggesting that corn ethanol is going extinct, just that, as some industry experts have put it, corn ethanol is going through a “major adjustment” where the outcome will be large swaths of consolidation and efficiency improvements within the industry.

In a way, corn ethanol is finally coming of age. To put it crudely, little Timmy has stopped having wet dreams and gone out and met some actual women.

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Regardless of how the debate between corn ethanol and second-generation, non-food ethanol (cellulosic ethanol) pans out, we may be arguing about the wrong thing. “Why’s that?” you might ask. You see, as a source of fuel, ethanol poses several serious problems.

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The process works by chopping the complex raw wood molecules into smaller and simpler bits — the end product being single sugar molecules. The method can also be used on other second generation ethanol feedstocks such as grass straw. Once you’ve made the sugar, the rest of the process of making ethanol is as simple as making beer — literally.

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In an upcoming review paper, professor Michael Scharf details how termites — which cause hundreds of millions of dollars in damage to houses in the US alone each year — might actually prove useful for something that most people could never have envisioned.

Through millions of years of evolution, termites have filled a niche in the animal world that takes precise chemical coordination between the digestive enzymes and microbes in their guts to turn the wood that they eat into sugars which can then be used to “fuel” the termite.

It is this seemingly easy transformation of wood into sugar in the termite guts that holds the promise for future ethanol production, because, once you have the sugar, it’s easy to make ethanol through fermentation.

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Just for grits and shiggles, let’s say that when celluline’s finally produced in commercial amounts it will cost consumers $3.00 per gallon. If the cost savings associated with this catalyst were passed on to consumers, that would mean the same celluline would cost $2.10 per gallon.

Professor Michikazu Hara says the carbon-based catalyst can be made cheaply, and works by breaking down cellulose and creating sugar when mixed with water and heated to 100° C. Using the current celluline production methods, this step in the process uses a large amount of energy, time and chemicals.

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Sheesh. It seems that everybody and their brothers are ethanol experts these days. But what drives me nuts is that when people are talking about ethanol, they don’t seem to know what type of ethanol they’re talking about.

It’s sad because the widespread misinformation and misunderstanding is killing popular opinion for biofuels in general right now and, in particular, mercilessly destroying the good name of the second generation of ethanol — cellulosic ethanol.

The truth of the matter is that cellulosic ethanol will be made from non-food sources (miscanthus, switchgrass, wood waste, and even garbage) that can be grown on marginal land or is already a waste byproduct of society.

The production of cellulosic ethanol could have huge benefits beyond energy independence:

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