BlueFire: An example of a good ethanol subsidy?

Better than corn-based ethanol subsidies?

"The U.S. Department of Energy (DOE) and BlueFire Ethanol Fuels, Inc. (OTC BB:BFRE.OB - News) today announced a cooperative agreement, which plays a critical role in bringing cellulosic ethanol to market.

The agreement provides BlueFire with the first of two stages of the Grant funding (totaling $40 million) for its second U.S. commercial ethanol production facility located in California. This facility was designated to demonstrate the economic feasibility and environmental superiority of producing cellulosic ethanol from post-sorted green waste and other cellulosic materials."

Isn't this a better way for the government to support the biofuels industry? Quite simply, corn-based ethanol is just not a good solution. In fact, it's just not a good idea at all.