USDA Seeks Applications for Funding to Help Develop Advanced Biofuels and Biobased Products
WASHINGTON–Agriculture Secretary Tom Vilsack today announced that the U.S. Department of Agriculture is seeking applications for funding to help support the development of advanced biofuels, renewable chemicals and biobased products.
"The bioeconomy is a catalyst for economic development in rural America, creating new jobs and providing new markets for farmers and ranchers," Vilsack said. "Investing in the businesses and technologies that support the production of biofuels and biobased products is not only good for farm incomes. The whole economy benefits from a more balanced, diversified and consumer-friendly energy portfolio, less dependence on foreign oil and reduced carbon emissions."
Funding is being provided through the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program, formerly known as the Biorefinery Assistance Program. Congress established the program in 2008 to encourage the development of biofuels that use renewable feedstocks. The 2014 Farm Bill expanded the program to include renewable chemicals and biobased product manufacturing. The program now provides loan guarantees of up to $250 million to develop, construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and biobased product manufacturing facilities.
USDA has provided $844 million in loan commitments to 10 businesses in the Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Program since the start of the Obama administration. Companies receiving these commitments are projected to produce 159 million gallons of advanced biofuels.
In 2011, under this program, USDA provided Sapphire Energy a $54.5 million loan guarantee to build a refined algal oil commercial facility. Sapphire's "Green Crude Farm" in Columbus, N.M., is an example of how USDA funding and partnerships with the private sector are helping to support the development of biorefineries.
The plant opened in May 2012 and is producing renewable algal oil that can be further refined to replace petroleum-derived diesel and jet fuel. According to the company, more than 600 jobs were created during the first phase of construction at the facility and 30 full-time employees currently operate the plant. After Sapphire received additional equity from private investors, it repaid the remaining balance on its USDA-backed loan in 2013.