The US Agriculture Department has forecast that half of the country’s corn crop this year would be consumed by ethanol producers, raising red flags over prices and supply.

Gasification, first used to turn coal into gas, could be used to turn wood chips into syngas, which could be converted into other fuels such as ethanol. Three plants are planned that use wood chips and timber scraps.

The current cost of gasification is about twice as much as the average US$1.10 per gallon for corn-based ethanol plants.

Energy secretary Samuel Bodman said: “These gasifiers are some hi-tech stuff with high pressures and some more complexities. But they are probably more versatile to modify as the demand and supplies change.”