The production of cellulosic ethanol is on the rise in Iowa, New York and South Dakota according to the Department of Energy.

The DOE says that while 2009 is starting out as a difficult year for the ethanol fuel industry, so far it's been a landmark year for cellulosic ethanol.

Produced from non-food plants and agricultural residues, cellulosic ethanol is expected to yield significant benefits in terms of energy savings and greenhouse gas emissions. So far this year, Poet and Mascoma Corporation have started up pilot plants in South Dakota and New York, while Poet is already planning ahead for its construction of a commercial facility in Iowa. Read more from this