Fed Gives $564 Million to Help Kickstart Biomass Industry

The Energy and Agriculture departments announced Recovery Act loan guarantees totaling $564 million for 19 integrated biorefinery projects. The guarantees will be used to accelerate construction and operation of pilot, demonstration and commercial-scale advanced biofuels production facilities.

The projects, which are located in 15 states, will evaluate refining technologies and help lay the groundwork for the creation of a commercial-scale biomass industry in the country. The projects are among many examples of Smart Grid technologies being promoted and financially supported with grants and loan guarantees by the DOE, Agriculture, Interior and other federal agencies. A new commercial-scale biomass industry is expected to create new, green jobs.

The projects will be matched with more than $700 million in private and non-federal cost-share sources.

"Advanced biofuels are critical to building a cleaner, more sustainable transportation system in the U.S.," said Energy Secretary Steven Chu. "These projects will help establish a domestic industry that will create jobs here at home and open new markets across rural America."

Agriculture Secretary Tom Vilsack joined Chu in announcing the loan guarantees. "The development of renewable energy is a critical component of our efforts to rebuild  and revitalize rural America," he said. "This Farm Bill program is instrumental in increasing our energy independence and expanding new technologies and markets for agricultural and environmental waste material."

The Biorefinery Assistance Program, which was authorized through the 2008 Farm Bill, encourages development of new and emerging technologies for fuels produced from biomass sources, excluding corn kernel starch. Loan guarantees are available to develop, build and retrofit commercial-scale biorefineries for production of advanced biofuels. Maximum loan guarantees are $250 million per project.

Vilsack noted that one of the companies selected for a guarantee, San Diego-based Sapphire Energy, will receive $54.5 million for a demonstration project that involves cultivating algae, using a dewatering and oil extraction technology to produce an intermediate that will be processed into drop-in green fuels such as jet fuel and diesel. Those facilities will be built in Columbus, New Mexico.

Up to $583 million will go to 14 pilot projects and four demonstration biorefinery projects throughout the country. The remaining $81 million will be used to accelerate construction of a biorefinery project that had received other funding earlier.

   EERE news release

   Selected projects (pdf)

   More on Smart Grid stimulus awards

   Renewables resources on SGN