USDA Approves Payments for Advanced Biofuels

Cindy Zimmerman

USDAUSDA will make payments to more than 160 energy producers in 41 states “to support and ensure the production and expansion of advanced biofuels.”

“Renewable energy production will create tens of thousands of direct, American jobs; thousands more indirect jobs, and clean electricity to power millions of homes. The payments I am announcing today represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation’s dependence on foreign energy sources,” said Agriculture Secretary Tom Vilsack

The payments are authorized under the Bioenergy Program for Advanced Biofuels (Section 9005 of the 2008 Farm Bill) and are made to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

The payments total nearly $80 million and range from a low of just over $1000 for Kaapa Ethanol in Nebraska to a high of nearly $10 million for Hero Bx in Pennsylvania for “biodiesel mechanical.” Some of the bigger payments being awarded include $6.2 million to Renewable Energy Group for biodiesel trans esterification, $4.8 million to Smarter Fuel of Pennsylvania for biodiesel from waste products, $4 million to White Energy in Texas for ethanol, $3.2 million for Louis Dreyfus Agricultural Industries for biodiesel from waste, and $2.6 million to ADM for biodiesel trans esterification.

For a list of all recipients, click here.

Biodiesel, bioenergy, biofuels, Energy, Ethanol, Ethanol News, USDA