Converting wood chips into ethanol sounds great, but they keep building expensive plants (with taxpayer support) that do not work and end up shuttered. The mastermind in this case is a billionaire and big Democrat bundler.
See also Range Fuels.
Just over a year ago, billionaire venture capitalist Vinod Khosla was bubbling with optimism about one of his latest investments: KiOR, a biofuel outfit he said would turn wood chips into hydrocarbons that could be poured straight into a refinery, pipeline or vehicle…
Now, however, the spell has been broken. On Nov. 10, KiOR filed for bankruptcy, leaving behind 2,067 creditors, including the state of Mississippi, which had given KiOR a $75 million, 20-year, no-interest loan after the company assured officials that it would invest $500 million in the plant and create 1,000 jobs by December 2015.
During its short life, KiOR lost money on every gallon it produced; costs ran $5 to $10 a gallon even without counting the cost of building the plant, according to biofuel industry analysts. According to court papers, KiOR’s revenue totaled just $2.25 million; losses amounted to $629.3 million. Even injections of money from Khosla ($85 million) and Bill Gates ($15 million) in October 2013 could not stave off bankruptcy.