Sep. 29--FARGO, N.D. -- They're still asking, "What Makes Sense?" when it comes to biomass fuel and byproduct manufacture, and it may take big investments in research to know whether megabuck manufacturing will work.

And that was the theme of the third annual conference under this title sponsored by the North Dakota State University's Bio Energy and Product Innovation Center. It drew about 100 officials to offer industry updates.

Part of the conference involves bio-fuels proponents shoring up ethanol's image as a viable economic and environmental player in the fuel market.

Biofuel defender Bruce Dale, a distinguished professor of chemical engineering and former department chairman at Michigan State University, was one of the speakers for the conference. He offers a defense for biofuels and their efficiency, compared with the traditional petroleum-based industry. Dale is co-director a Department of Energy Great Lakes Bioenergy Research Center, which has received $135 million to develop cellulosic ethanol and other bioenergy.

Dale developed what is known as an Ammonia Fiber Expansion pretreatment process, using hot, concentrated ammonia water to break down some biofuels feedstock.

NDSU is working with Michigan researchers to create a regional biomass processing supply chain, with regional pre-treatment centers to "densify and homogenize" biomass materials into "AFEX biomass pellets," which later would be made into ethanol and other products.

The AFEX system offers a "dry-in, dry-out" system to make the pellets three to five times as dense as "baled biomass" and would be "scalable" down to 250 tons per plant per day.

He says the process could cut the cost of pretreated biomass by $20 to $30 per ton.

Using wheat straw, such a process possibly could allow for the recovery of "nanofibers" as a byproduct, for use in making bio-composite materials.

Bernie Steele, director of operations for MBI International of Lansing, Mich., says research is needed to determine the feasibility of such a system. He and Larry Leistritz, an NDSU professor, say they are anxious to find out whether a partnership between the two entities will acquire a Department of Energy grant -- pending for announcement in the next weeks and months -- would be enough construct a 1 ton-per-day pilot-scale plant in Michigan. Construction cost would be $11.3 million. The total research project cost would will be $23.5 million for four years.

If the DOE grant doesn't come through, other sources will be sought.

Contributions of $800,000 a year ago by the North Dakota Industrial Commission helped get information for the DOE application.