Finding an engineer that was willing to make a considerable investment in the project was just the kind of commitment Klann was looking for.

"[China Huadian] had experience with sulfuric acid, and that was important because our process is an acid hydrolysis-based technology," says Klann. "They also have experience with burning lignin, the by-product of cellulosic ethanol production. That's [the material] we're going to use to power the plant. So they have a package of services and talent that is a very good mix for our project."

The biomass power application is a $100-million project alone. "They knew that we might not make any money on the first plant, but we'll make money on the second one," Klann explains. "Risk is less with a series, and a lot of the companies we approached in the past seemed very nearsighted." If Fulton is successful, China Huadian says it is on board to back five more plants.

One of the competitors not chosen this year to receive U.S. Dept. of Energy loan guarantees to build an advanced biofuels plant is taking its cause abroad.