By Paul Monies
Business Writer
As printed in the The Oklahoman, October 17, 2007.

Oklahoma is at the leading edge of a new generation of ethanol research to create transportation fuel from switchgrass, experts said Tuesday at the opening day of the Oklahoma Biofuels Conference.

Earlier this year, state lawmakers pledged $40 million to establish the Oklahoma Bioenergy Center to conduct research into cellulosic biomass such as switchgrass for conversion to ethanol.

"I believe Oklahoma is uniquely well-positioned to be a natural leader in the biofuel industry, and it would be foolish if we didn't pursue that opportunity," Gov. Brad Henry said at the conference in Oklahoma City.

Henry said the state's abundant natural grasses, especially switchgrass, show enormous potential for ethanol. As a source, switchgrass is more energy efficient than corn-based ethanol and doesn't compete for scarce food resources.

Projections from Oklahoma State University show a single biorefinery in Oklahoma could pump $40 million into the state economy. Biorefineries have been announced in the last 15 months in Shattuck, Guymon, Enid and Blackwell.

"We have an opportunity not just to help the nation, but to revitalize the economies in our rural areas," Henry said.

The bioenergy center is a collaboration among researchers and policymakers at OSU, the University of Oklahoma and the Samuel Roberts Noble Foundation. The state has already committed $10 million of an expected $40 million over four years.

"Oklahoma has the opportunity to develop and invest in ways to produce biofuels that don't affect food, feed or fiber," Ray Huhnke, professor of biosystems and agricultural engineering at OSU, said in a statement. "Evaluating the best types of biomass to grow, the best conversion processes to use and the best places to locate conversion facilities in our state will create an industry that is successful and sustainable, without the negative impacts of using an already dedicated food source to produce biofuel."

Other presenters said federal energy and agricultural policies must provide more support to the fledgling biofuels industry if it is to reach mass-market status.

"It's easy to get excited about this, but this isn't an industry. It doesn't exist, it's aspirational," said Curt Rich, an attorney with energy law firm Van Ness Feldman in Washington. "All we have is a lot of smart people at the starting line. We're all at the beginning of a new industry."

Rich said a distinction should be made between the more mature corn-based ethanol industry and the emerging cellulosic ethanol and biofuel industries. Concerns over an ethanol glut in the Midwest, rising corn prices and higher food prices because corn is being diverted to ethanol production already are making headlines, he said.

"We've got to be ready for the bad stories and be ready to accept failure and move on quickly," Rich said.

This article appeared in The Oklahoman, www.newsok.com, on October 17, 2007.