Ethanol: Range Fuels

Despite all its promise, one prominent concern with ethanol is that it diverts food stocks into fuels stocks. The results of this can be seen in the recent skyrocket in corn prices (about 70% in the last 6 months) resulting from increased speculation in ethanol opportunities.

(Perhaps foreshadowing political issues to come, major protests in Mexico about increases in corn tortilla prices are attributed to renewed American interest in ethanol.)

One possible solution is deriving ethanol from non-corn sources. Privately held Range Fuels is currently perfecting this process, concentrating not on corn but instead on wood chips, plant cellulose, and other "waste" plant sources. The potential benefits are substantial, due primarily to the ability to derive ethanol from the entire plant, not just corn grain.

The Department of Energy apparently sees the potential of Range as well. The DoE recently awarded a grant worth up to $76 million to Range to capitalize construction of a commercial scale production plant in Georgia.

Range is funded primarily by Kholsa Ventures, which has made several large investments in alternative energy start ups.