Greenfield Ethanol and Enerkem have signed a deal to make cellulosic ethanol a commercial reality. The agreement will see them collaborate 50/50 on projects to produce cellulosic ethanol on a commercial scale.

The goal is to use Enerkem's technology, which converts biomass such as sorted municipal solid waste and urban wood residues into cellulosic ethanol and other biofuels. It eliminates more than two tonnes of greenhouse gases (GHGs) per tonne of residues used as feedstock.

Cellulosic ethanol is preferred over typical ethanol fuel because it doesn't use food sources as feed stock. It can be produced using a variety of materials for feed, including most plant material and waste wood.

The growth of cellulosic ethanol usage could be a big boon to alternative fuel vehicles. By reducing the reliance on food-stock ethanol such as ethanal made from corn, it has the potential to become more widely accepted by the public, and can help push for the development of more flex-fuel vehicles, reducing the amount of CO2 added to the air from gasoline-fueled vehicles.

Plans are currently set to announce the first plant location in the coming weeks, with a second plant in the development stages.