The hesitancy has to do primarily with the size of the plant. In cellulose ethanol, we have the opposite situation compared to grain-based ethanol. Grain-based ethanol is low capital cost, higher operating cost. In cellulose ethanol, we have the reverse. We have high upfront capital cost, lower operating cost, because, of course, we're using an agricultural residue so the cost of operating is less. For the capital costs, you're looking at between $300 million and $400 million to build the first commercial plant.
So there's the issue of the quantum and then there's the issue of the mechanism. It's been made quite clear to us by the Department of Finance that they do not have any desire to issue loan guarantees to cover the debt portion of the plant.
The idea is that 100% of the project is financed in the private sector through a combination of equity and debt. We have the equity players at the table. On the debt, there's a fundamental lack of understanding in Canada, I think, of the problems associated with the commercialization of emerging technologies. This has nothing to do with cellulose ethanol; this is any emerging technologies. Lenders don't lend debt to technology that's never been proven at that scale before. So sure, we have a demonstration plant on Hunt Club Road, but they won't lend you the debt unless that debt is guaranteed by a strong credit rating, such as the government--hence, the U.S. government's loan guarantee program, which a Republic Senate and a Republican Congress and a Republican president passed.