We have the opposite problem--and when I say “we”, recognize that I also work for a company that's in the cellulosic ethanol business. Generically speaking, cellulosic ethanol has a higher capital cost but a lower operating cost. Grain ethanol is the reverse. It has low capital costs for building the plants and a higher operating cost because you're using a non-agricultural residue as your feed stock.
Getting over the high capital cost is certainly a hurdle to having the first few plants built. Once the product comes off the line--the ethanol molecule--we'll have to be competitive with current ethanol pricing.