INEOS BioEnergy Center has received a conditional commitment for a $75 million loan guarantee as part of the USDA’s 9003 Biorefinery Assistance Program. The project is a partnership between INEOS Bio and New Planet Energy. The funds will be used for the construction of their plant to be located near Vero Beach, Florida. Once completed, the biorefinery will produce 8 million gallons of advanced biofuel per year along with 6 megawatts of renewable power from biomass including yard, vegetative, wood wastes, and municipal solid waste. Construction at the site for the BioEnergy Center is already underway and is expected to be completed and in production by 2012.

“We are encouraged by the continued confidence and commitment the U.S. Government has shown in assisting with the commercial development of this new bioenergy technology,” said Peter Williams, CEO of INEOS Bio and Chairman of INEOS New Planet BioEnergy. “These programs are providing the funds needed to enable the U.S. to achieve a leading position in the bioenergy sector through projects such as ours. As well as directly assisting construction of the INEOS New Planet BioEnergy commercial plant, the loan guarantee also represents an important step along the road to replication of this exciting new technology through INEOS Bio’s licensing program.”

According to INEOS, the key to their technology lies in their patented anaerobic fermentation step. During this process, naturally occurring bacteria convert gases derived from the biomass into ethanol. Their technology is also able to use multiple feedstocks including construction waste, municipal solid waste, forestry waste, and agricultural waste, while most other similar technologies are feedstock specific.