The EPA recently reported that it expects 100 million gallons of cellulosic ethanol to be produced in the U.S. by 2010, and it included in that number 70 million gallons from Alabama-based company Cello Energy. The problem is, however, that Cello is nowhere near capable of producing that much -- it can barely handle 20 million gallons at the moment.
The government failed to factor in ethanol fraud in its estimation. Cello actually only has one plant producing biofuel (if its system is working), and was credited for another 50 million gallons for three plants it was going to build in the future.
And it doesn't stop there -- an Alabama jury ordered Cello principals to pay $10.4 million in damages for showing investors a petroleum-based fuel that it claimed was ethanol.
Oh the madness. Check out John O'Dell's article for further info and the reasons why there might be a huge spike in the value of ethanol.
Green Car Advisor: EPA Put Faith in Fraud, Now Cellulosic Goals Falling Short - Very Short
Add a comment