Today, the Biotechnology Industry Organization (BIO) released a letter to House and Senate appropriators asking them to fund the Section 942 of the Energy Policy Act of 2005 labeled as Production Incentives for Cellulosic Biofuels to the tune of $25 million for 2011. Known as a reverse auction program, BIO is encouraging this action as a way to assist pioneer cellulosic biofuels producers in the U.S. in an affordable manner.
“The reverse auction program rewards pioneering cellulosic biofuel producers who can provide the most cost effective product,” explained Brent Erickson, executive vice president for BIO’s Industrial and Environmental Section. “This program, if closely coordinated with other federal programs, can stimulate the private investment needed to build large-scale biorefineries to meet the energy production and greenhouse gas reduction goals of the United States.”
BIO cites several Congressmen and Senators who have supported this request, in particular Representative Bruce Braley (D-Iowa) and Senators Tom Harkin (D-Iowa), Richard Lugar (R-Ind), Evan Bayh (D-Ind) and Edward Kaufman (D-Del.).
The official bio report, “U.S. Economic Impact of Advanced Biofuels Production,” yielded several key findings:
- • Direct job creation from advanced biofuels production could reach 29,000 by 2012, rising to 94,000 by 2016 and 190,000 by 2022.
• Investments in advanced biofuels processing plants alone would reach $3.2 billion in 2012, rising to $8.5 billion in 2016, and $12.2 billion by 2022.
• Direct economic output from the advanced biofuels industry, including capital investment, research and development, technology royalties, processing operations, feedstock production and biofuels distribution, is estimated to rise to $5.5 billion in 2012, reaching $17.4 billion in 2016, and $37 billion by 2022.
“Advanced biofuels are a key to creating new jobs and revitalizing the U.S. economy. Development of the advanced biofuels industry could produce hundreds of thousands of new green jobs and contributing more than $140 billion in economic growth by 2030. Rapidly increasing U.S. production of advanced biofuels is also a sound way to significantly reduce U.S. reliance on imported petroleum and carbon emissions associated with climate change,” concluded Erickson.
You can download the full report here.