Producing ethanol fuel from non-food sources remains largely a dream deferred. The federal government has mandated 2 billion gallons of cellulosic ethanol production by 2012, but meeting that deadline may be a challenge as large-scale plants are just entering the planning stage.

Research on cellulosic ethanol from biomass continues to show progress, as evidenced by work from Sweden which shows a 40 percent increase in yield based on a new process of using yeast.

However, advances in the lab have not translated to full-blown production. Last week Coskata signed a deal to explore a 100 million gallon per year ethanol plant, but that would likely only becoming online when the deadline hits. Even small-scale production facilities have been slow to take off, according to the Wichita Eagle.

The federal government continues to throw research dollars -- albeit small when considering the potential market and benefits -- at the technical challenges. At a meeting in Sao Paulo, Brazil, the National Renewable Energy Lab promised to collaborate closely with Brazil's leading research center and to make technology available to five developing nations.

The current economic environment could make getting the financing for these types of high-risk projects even more challenging. The incoming Obama administration promises to fully support cellulosic ethanol research, but it may not be fast enough to meet the 2012 deadline.