http://www.nytimes.com/2008/07/24/business/24fuel.html?hp
The Energy Challenge
Gassing Up With GarbageBy MATTHEW L. WALD
Published: July 24, 2008After years of false starts, a new industry selling motor fuel made from waste is getting a big push in the United States, with the first commercial sales possible within months.
Many companies have announced plans to build plants that would take in material like wood chips, garbage or crop waste and turn out motor fuels. About 28 small plants are in advanced planning, under construction or, in a handful of cases, already up and running in test mode.
For decades scientists have known it was possible to convert waste to fuel, but in an era of cheap oil, it made little sense. With oil now trading around $125 a barrel and gasoline above $4 a gallon, the potential economics of a waste-to-fuel industry have shifted radically, setting off a frenzy to be first to market.
“I think American innovation is going to come up with the solution,” said Prabhakar Nair, research chief for UOP, a company working on the problem.
Success is far from assured, however. Some of the latest announcements come from small companies whose dreams may be bigger than their bank accounts. They are counting on billions in taxpayer subsidies. Big technological hurdles remain, and even if they can be solved, no one is sure what unintended consequences will emerge or what it will really cost to produce this type of fuel.
“We desperately need it, and I personally think it’s not there yet,” said Steven Chu, director of the Lawrence Berkeley National Laboratory and a Nobel Prize-winning physicist. “You have to look at starts with a grain of salt, especially starts where they say, ‘It’s around the corner, and by the way, can you pay half the bill?’ ”


