After cutting the legislated amount of cellulosic ethanol production this year from 250MM gal (16.3K b/d) to 6MM gal (391 b/d), the EPA proposed cutting the 2012 level from 500MM gal (32.6K b/d) to 12.9MM gal (841 b/d). Producers of second-generation biofuels, which utilize non-food feedstocks, have not been able to keep up with federal mandates due to the expensive cost of enzymes that are needed in the production process. Some of the enzymes used in second-generation biofuels processes can cost up to $2/gal, making cellulosic ethanol much more expensive than gasoline.
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