Goldman Sachs & Co. has invested $30 million in an Ottawa-based ethanol firm.

Ottawa’s Iogen Corp. announced that Goldman Sachs invested $30 million in its renewable cellulose ethanol technology. Goldman’s investment gives it a minority stake in Iogen. It joins the Royal Dutch/Shell Group as a major investor.

“Goldman is the first major Wall Street firm to make a commitment to cellulose ethanol,” says Iogen CEO Brian Foody. “Renewable fuels like cellulose ethanol are one of the main options President Bush recently highlighted to reduce America’s dependence on foreign oil.

Iogen says the funds will be used to accelerate its commercialization program. It suggests that cellulose ethanol will allow a much greater expansion of US alternative fuel supply because there is a substantial untapped existing biomass resource. It represents a renewable biofuel that can be used in today’s cars, reducing gas consumption and greenhouse gas emissions from automobiles.

It reports that a joint study by the U.S. Departments of Agriculture and Energy has concluded that the land resources of the US could produce a sustainable supply of biomass sufficient to displace 30% (60 billion gallons of renewable fuel per year) of the country’s present gas consumption.