A cellulosic ethanol demonstration plant in Louisiana is just the first planned for Verenium.

The Houston Chronicle reports that the 1.4 million gallon per year demonstration plant which opened today “could help usher in a new era for ethanol.” The plant is making ethanol from sugar bagasse and is also partnering with local farmers to grow “energy cane.”

“The issue isn’t, ‘is there going to be ethanol,'” said Verenium Chief Executive Carlos Riva. “But how can we do it right?”

Verenium plans to begin building a 30 million gallon per year cellulosic plant next year in Houston or Beaumont, Texas and is also considering other sites in Louisiana and Florida.

Verenium’s Matthew Musial describes the process of creating ethanol from the bagasse in this video from the Houston Chronicle: