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Xylogenics, Inc is a small company (under 10 employees) that began in the IU Medical School.  Dr. Mark Goebl and his assistants were working on yeast strains with the intent of studying their potential in curing disease. One strain of yeast yielded the by product cellulosic ethanol.

This particular strain of yeast is able to breakdown cellulose increasing production by at least 30%. Not only does the yeast increase production of ethanol, it allows producers to use materials such as corn kernels, corn stover, wheat straw, barley straw, grasses, wood waste and municipal waste.

By using material that is a non-food source and increasing the yield, Xylogenics, Inc makes ethanol an economic alternative to gasoline reducing dependence on foreign oil and fossil fuels. Other benefits include reduced greenhouse emissions and enhancement of diverse rural communities.

Xylogenics, Inc has an advantage over competitors in that existing corn ethanol facilites can easily be converted to cellulosic ethanol facilities. Competitor's technologies require the building of new facilities.