Spencer, IA: (Jan. 23, 2012) - Ethanol maker POET says it will decline a $105 million loan guarantee recently awarded by the U.S. Department of Energy (DOE).
 
POET CEO Jeff Broin, on Monday,  announced a joint venture with DSM, a global Life Sciences and Material Sciences company. Broin said the DOE loan will become “unnecessary” in light of the new partnership.
 
DSM and POET will each hold a 50-percent share in the joint venture, which will be headquartered in Sioux Falls. The initial capital expenditure by the joint venture in Emmetsburg-based Project Liberty will amount to about $250-million, according to Broin.
 
Project Liberty will produce cellulosic ethanol from corn crop residue through a biological process using enzymatic hydrolysis followed by fermentation. The initial capacity at the Emmetsburg site is expected to be 20 million gallons, growing to an annual capacity of 25 million gallons.
 
Project Liberty is expected to start production in the second half of 2013.
 
POET received a commitment for a $105-million loan guarantee to finance Project Liberty on September 23, 2011. Upon the closing of the joint venture, Broin says POET will officially decline the guarantee prior to drawing any funds.