Within three to five years, Dr. David Millhorn told Chattanooga Rotary Club members Thursday, Tennessee could be a leader in the biofuels industry.

Dr. Millhorn, executive vice president of the University of Tennessee, said the school has entered into a partnership with cellulose biofuels pioneer Mascoma Corp. Together, they hope to build and operate a refinery in Monroe County that produces five million gallons of cellulose ethanol annually.

The facility will be located 35 miles south of Knoxville in Vonore, and construction is expected to begin by the end of this year. Hopefully, it will be operational by 2009, he said.

The collaboration with Mascoma grew out of the UT Biofuels Initiative, a research model designed to reduce American dependence on foreign oil and, at the same time, provide a boost to Tennessee’s economy.

The presentation drew an enthusiastic response from Rotary members, who – less than a week before Halloween – were in a jovial mood even before Dr. Millhorn’s presentation began.

Emcee Jim Kennedy, for example, drew a huge laugh with a comment on the City Council’s decision to try to deny insurance benefits to ousted Council member Marti Rutherford.

“Have you all decided what you’re going to wear for Halloween?” Mr. Kennedy asked. “The City Council is going to dress up as hornets because they feel that if you want to be small and mean then you should look small and mean.”

The laughter subsided, however, when Dr. Millhorn began outlining UT’s plan to develop a thriving biofuels industry in Tennessee.

A generation ago, during the oil shortage that marked the 1970s, biofuel enthusiasts began looking for a renewable source of fuel that could take the place of imported petroleum products. Most of that research centered on finding ways to make fuel from corn, he said.

Today, industry leaders know how to make that happen, he said. But since corn is also used as food for both animals and people, the amount which is available for conversion into fuel is extremely limited.

At UT, he said, researchers wanted to find an agricultural product that could be converted into fuel – and that was not also in demand as a food product. After much research, they decided to use switchgrass, a perennial grass that can be grown cheaply and abundantly, with production costs no higher than $1.20 per gallon.

Once the Monroe County refinery is operating a full capacity, it will require 170 tons of switchgrass and other agricultural and forest products, Dr. Millhorn said.

An $8 million incentive program is being developed to encourage farmers to begin growing switchgrass. In addition to the incentives, participating farmers will be provided with high quality switchgrass seed.

Once the switchgrass is fully grown, he said, it can be harvested like hay.

The switchgrass can be grown on farmlands that are now under-utilized, he said.

During a lively question and answer session, Rotary members indicated they like the concept.

“I just have one question,” a smiling woman told Dr. Millhorn. “Can you all use kudzu?”

“We’ll use all the kudzu you bring us,” he replied, laughing. “I’m sure there are a lot of people who would like to get rid of their kudzu . . . The problem is it’s hard to harvest.”