A Colorado-based firm with a planned biorefinery located near Soperton, Georgia is the recipient of a loan guaranteed by USDA Rural Development to make cellulosic biofuel from wood chips, according to a USDA announcement. The finalized deal with Range Fuels was first announced last year and represents the first ever loan guarantee by USDA to a commercial-scale cellulosic biofuel plant. This project is expected to provide biorefinery jobs, construction jobs and support the timber industry.
“USDA’s investment in the construction of Range Fuels’ commercial facility, which will produce cellulosic biofuel from non-food biomass, such as wood chips, demonstrates the Obama Administration’s goal to make the United States a leader in renewable energy production and furthers the President’s ongoing efforts to bring jobs to rural communities,” said Under Secretary for Rural Development Dallas Tonsager. “USDA is proud to work with the lender and the private sector to bring economic opportunity to rural areas.”
The $80 million loan, being made by AgSouth Farm Credit to Range Fuels, Inc., is being guaranteed through USDA’s Biorefinery Assistance Program authorized by the Food, Conservation, and Energy Act of 2008 and administered by USDA Rural Development. When fully operational, the plant is expected to produce an estimated 20 million gallons of cellulosic ethanol per year. USDA announced a conditional commitment to provide the loan guarantee for Range Fuels in January, 2009.