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	<title>Comments on: Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework</title>
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		<title>By: Peter Sandfort</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-584963</link>
		<dc:creator><![CDATA[Peter Sandfort]]></dc:creator>
		<pubDate>Wed, 02 Feb 2011 14:41:27 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-584963</guid>
		<description><![CDATA[The technology of producing cellulosic ethanol is neither new nor extremely difficult. Cellulosic ethanol was first produced in Germany in 1898. Two commercial sized cellulosic plants have been operating in Scandinavia for decades with more on the way. The Soviet Union had more than 50 large cellulosic ethanol plants until the collapse caused uneconomic enterprises to fail. Commercial cellulosic plants were built and operated in the USA in 1910, 1945, and in the 60&#039;s. The point that is continually missed is that making cellulosic ethanol is unprofitable.

Private and public millions continue to be thrown at developing a technology which has already been developed. The real point is that the technology needs to be further tweaked to make it profitable - if that is possible. If one performs due diligence on feedstock cost, proper plant cost, pollution abatement, operating costs, etc. it is essentially impossible to develop a scenario where one could operate at a profit. 

Lets move on to Generation 1.5 - the use of traditional starch fermentation technology to new feedstocks like barley, wheat, e3nergy sweet potato, sweet sorghum, and numerous others. The plant sites have to be in the right places with local advantages like utilizing waste heat from a power plant and many other special advantages to allow the next generation of ethanol plants to better ride out the inevitable up and down nature of commodity feedstock prices.]]></description>
		<content:encoded><![CDATA[<p>The technology of producing cellulosic ethanol is neither new nor extremely difficult. Cellulosic ethanol was first produced in Germany in 1898. Two commercial sized cellulosic plants have been operating in Scandinavia for decades with more on the way. The Soviet Union had more than 50 large cellulosic ethanol plants until the collapse caused uneconomic enterprises to fail. Commercial cellulosic plants were built and operated in the USA in 1910, 1945, and in the 60&#8242;s. The point that is continually missed is that making cellulosic ethanol is unprofitable.</p>
<p>Private and public millions continue to be thrown at developing a technology which has already been developed. The real point is that the technology needs to be further tweaked to make it profitable &#8211; if that is possible. If one performs due diligence on feedstock cost, proper plant cost, pollution abatement, operating costs, etc. it is essentially impossible to develop a scenario where one could operate at a profit. </p>
<p>Lets move on to Generation 1.5 &#8211; the use of traditional starch fermentation technology to new feedstocks like barley, wheat, e3nergy sweet potato, sweet sorghum, and numerous others. The plant sites have to be in the right places with local advantages like utilizing waste heat from a power plant and many other special advantages to allow the next generation of ethanol plants to better ride out the inevitable up and down nature of commodity feedstock prices.</p>
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		<title>By: A Self-Fulfilling Bet on Biofuels? &#124; Imvsam - Green Energy Renewable Energy Benefits</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24514</link>
		<dc:creator><![CDATA[A Self-Fulfilling Bet on Biofuels? &#124; Imvsam - Green Energy Renewable Energy Benefits]]></dc:creator>
		<pubDate>Fri, 23 Jul 2010 03:01:41 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24514</guid>
		<description><![CDATA[&lt;p&gt;[...] Cello Energy and Range Fuels. Unfortunately, last year Cello was ordered by a federal court to pay $10 million for defrauding investors concerning its technology claims. Meanwhile blogger Robert Rapier has documented the problems that [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Cello Energy and Range Fuels. Unfortunately, last year Cello was ordered by a federal court to pay $10 million for defrauding investors concerning its technology claims. Meanwhile blogger Robert Rapier has documented the problems that [...]</p>
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		<title>By: A Self-Fulfilling Bet on Biofuels? &#124; Ideanv - Hybrid Green Energy Blog</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24513</link>
		<dc:creator><![CDATA[A Self-Fulfilling Bet on Biofuels? &#124; Ideanv - Hybrid Green Energy Blog]]></dc:creator>
		<pubDate>Wed, 21 Jul 2010 16:19:10 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24513</guid>
		<description><![CDATA[&lt;p&gt;[...] Cello Energy and Range Fuels. Unfortunately, last year Cello was ordered by a federal court to pay $10 million for defrauding investors concerning its technology claims. Meanwhile blogger Robert Rapier has documented the problems that [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Cello Energy and Range Fuels. Unfortunately, last year Cello was ordered by a federal court to pay $10 million for defrauding investors concerning its technology claims. Meanwhile blogger Robert Rapier has documented the problems that [...]</p>
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		<title>By: Cello: A Lesson in Due Diligence &#124; Akca Welders - Welding Tig Welders Mig Welders</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24512</link>
		<dc:creator><![CDATA[Cello: A Lesson in Due Diligence &#124; Akca Welders - Welding Tig Welders Mig Welders]]></dc:creator>
		<pubDate>Sat, 13 Feb 2010 11:53:48 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24512</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]</p>
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		<title>By: Top 15 Stories from 2009 &#124; Earth2Tech &#171;</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24511</link>
		<dc:creator><![CDATA[Top 15 Stories from 2009 &#124; Earth2Tech &#171;]]></dc:creator>
		<pubDate>Mon, 04 Jan 2010 20:29:13 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24511</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework: Josie delved into the important lessons that came out of the Cello case, where the company was found to have defrauded investors, well after the EPA had incorporated the company’s production estimates into its biofuel mandates. [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework: Josie delved into the important lessons that came out of the Cello case, where the company was found to have defrauded investors, well after the EPA had incorporated the company’s production estimates into its biofuel mandates. [...]</p>
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		<title>By: Our Favorites: Top 15 Earth2Tech Stories from 2009</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24510</link>
		<dc:creator><![CDATA[Our Favorites: Top 15 Earth2Tech Stories from 2009]]></dc:creator>
		<pubDate>Fri, 01 Jan 2010 08:02:37 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24510</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework: Josie delved into the important lessons that came out of the Cello case, where the company was found to have defrauded investors, well after the EPA had incorporated the company&#8217;s production estimates into its biofuel mandates. [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework: Josie delved into the important lessons that came out of the Cello case, where the company was found to have defrauded investors, well after the EPA had incorporated the company&#8217;s production estimates into its biofuel mandates. [...]</p>
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		<title>By: Dr. Matt Fombong</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24509</link>
		<dc:creator><![CDATA[Dr. Matt Fombong]]></dc:creator>
		<pubDate>Sat, 31 Oct 2009 16:03:43 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24509</guid>
		<description><![CDATA[&lt;p&gt;The Cello Diesel system will work.I have studied the patent. It just needs extra time and it is unfortunate that the Cello guys, Boykins Right? went about collecting millions of dollars and promising heaven in a short time without doing their homework. Let them keep up the research!&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>The Cello Diesel system will work.I have studied the patent. It just needs extra time and it is unfortunate that the Cello guys, Boykins Right? went about collecting millions of dollars and promising heaven in a short time without doing their homework. Let them keep up the research!</p>
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		<title>By: Can Cellulosic Ethanol Meet EPA&#8217;s Renewable-Fuels Targets &#124; CleanBeta</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24508</link>
		<dc:creator><![CDATA[Can Cellulosic Ethanol Meet EPA&#8217;s Renewable-Fuels Targets &#124; CleanBeta]]></dc:creator>
		<pubDate>Sat, 26 Sep 2009 15:40:16 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24508</guid>
		<description><![CDATA[&lt;p&gt;[...] a mere four companies – Cello Energy, Range Fuels, Fulcrum Bioenergy and Southeast Renewable Fuels – will account for more than 90 [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] a mere four companies – Cello Energy, Range Fuels, Fulcrum Bioenergy and Southeast Renewable Fuels – will account for more than 90 [...]</p>
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		<title>By: Daily Sprout &#171; Energy Portfolio Managers Blog</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24507</link>
		<dc:creator><![CDATA[Daily Sprout &#171; Energy Portfolio Managers Blog]]></dc:creator>
		<pubDate>Mon, 21 Sep 2009 19:34:09 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24507</guid>
		<description><![CDATA[&lt;p&gt;[...] Go Bust: &#8220;The wave of biodiesel failures,&#8221; combined with the inability of Khosla-backed Cello Energy &#8220;to produce even a fraction of what it expected have spooked private investors, which could [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Go Bust: &#8220;The wave of biodiesel failures,&#8221; combined with the inability of Khosla-backed Cello Energy &#8220;to produce even a fraction of what it expected have spooked private investors, which could [...]</p>
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		<title>By: Aristos Avopenies</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24506</link>
		<dc:creator><![CDATA[Aristos Avopenies]]></dc:creator>
		<pubDate>Tue, 01 Sep 2009 15:48:58 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24506</guid>
		<description><![CDATA[&lt;p&gt;If Cello did this in regards to litigation, just imagine what a wonderful surprise Coskata is going to be.&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>If Cello did this in regards to litigation, just imagine what a wonderful surprise Coskata is going to be.</p>
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		<title>By: Daily Sprout</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24505</link>
		<dc:creator><![CDATA[Daily Sprout]]></dc:creator>
		<pubDate>Fri, 28 Aug 2009 20:01:25 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24505</guid>
		<description><![CDATA[&lt;p&gt;[...] Go Bust: &#8220;The wave of biodiesel failures,&#8221; combined with the inability of Khosla-backed Cello Energy &#8220;to produce even a fraction of what it expected have spooked private investors, which could [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Go Bust: &#8220;The wave of biodiesel failures,&#8221; combined with the inability of Khosla-backed Cello Energy &#8220;to produce even a fraction of what it expected have spooked private investors, which could [...]</p>
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		<title>By: ECO-BUSINESSWIRE.COM &#8250; Khosla Raises A Cool Billion For Green Investments</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24504</link>
		<dc:creator><![CDATA[ECO-BUSINESSWIRE.COM &#8250; Khosla Raises A Cool Billion For Green Investments]]></dc:creator>
		<pubDate>Tue, 21 Jul 2009 17:54:48 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24504</guid>
		<description><![CDATA[&lt;p&gt;[...] very dubious investments, like a biofuel company called Cello that, as recently came to light, was an outright fraud. Khosla invested in the company at the height of the biofuel craze, and more or less took them at [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] very dubious investments, like a biofuel company called Cello that, as recently came to light, was an outright fraud. Khosla invested in the company at the height of the biofuel craze, and more or less took them at [...]</p>
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		<title>By: Cello: A Lesson in Due Diligence &#124; Energy Stocks Blog</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24503</link>
		<dc:creator><![CDATA[Cello: A Lesson in Due Diligence &#124; Energy Stocks Blog]]></dc:creator>
		<pubDate>Tue, 07 Jul 2009 22:40:39 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24503</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]</p>
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		<title>By: Cello: A Lesson in Due Diligence &#124; 1800blogger</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24502</link>
		<dc:creator><![CDATA[Cello: A Lesson in Due Diligence &#124; 1800blogger]]></dc:creator>
		<pubDate>Tue, 07 Jul 2009 22:40:19 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24502</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]</p>
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		<title>By: Cello: A Lesson in Due Diligence &#124; Conservation Blog</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24501</link>
		<dc:creator><![CDATA[Cello: A Lesson in Due Diligence &#124; Conservation Blog]]></dc:creator>
		<pubDate>Tue, 07 Jul 2009 14:45:41 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24501</guid>
		<description><![CDATA[&lt;p&gt;[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] Lessons from the Cello Energy Biofuel Fraud Case: Do Your Homework  Cello Energy Leaves 50M-Gallon Gap in Feds’ Ethanol Targets [...]</p>
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		<title>By: Cello Energy Leaves 50M-Gallon Gap in Feds&#8217; Ethanol Targets</title>
		<link>http://gigaom.com/cleantech/lessons-from-the-cello-energy-biofuel-fraud-case-do-your-homework/#comment-24500</link>
		<dc:creator><![CDATA[Cello Energy Leaves 50M-Gallon Gap in Feds&#8217; Ethanol Targets]]></dc:creator>
		<pubDate>Tue, 07 Jul 2009 07:01:26 +0000</pubDate>
		<guid isPermaLink="false">http://earth2tech.com/?p=35913#comment-24500</guid>
		<description><![CDATA[&lt;p&gt;[...] bad for Cello Energy, the Khosla Ventures-backed startup that an Alabama jury last week decided made fraudulent claims about its biofuels technology, could in a way be good for cellulosic ethanol &#8212; or at least open up new incentives for the [...]&lt;/p&gt;]]></description>
		<content:encoded><![CDATA[<p>[...] bad for Cello Energy, the Khosla Ventures-backed startup that an Alabama jury last week decided made fraudulent claims about its biofuels technology, could in a way be good for cellulosic ethanol &#8212; or at least open up new incentives for the [...]</p>
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