Interestingly, wiht this announcement, the DOE says it is not looking to fund any sort of cellulosic ethanol. Instead, the biofuels that the DOE is hopes to help create include aviation fuel, green gasoline and green diesel. Biofuels made from algae are high on the DOE's funding hitlist, as are bio-based replacements for traditional hydrocarbon fuels. More details are available here.
Photo by *higetiger. Licensed under Creative Commons license 2.0.