US government earmarks $600 million for bio-fuel projects
05 Dec 2009
The federal government announced yesterday around $600 million investment in advanced bio-refinery projects in order to lay the foundation for bio-mass industry in the country and create jobs and new markets for rural America.
The nineteen integrated bio-refinery projects selected across the country will receive up to $564 million from the American Recovery and Reinvestment Act (ARRA), and including private company investment, the total planned outlay is approximately $1.3 billion to develop pilot, demonstration and commercial scale facilities, a statement issued by the US Department of Agriculture said.
The next-generation projects will produce advanced bio-fuels, bio-power and bio-products using bio-mass feed-stocks as part of the US government's initiative to reduce dependence on foreign oil.
Energy secretary Steven Chu said: ''Advanced bio-fuels are critical to building a cleaner, more sustainable transportation system in the US. These projects will help establish a domestic industry that will create jobs here at home and open new markets across rural America."
''Anything from poultry fat to tree branches and even grass clippings could be turned into fuel. You're taking waste material and creating a high value fuel," he added.
A non-ARRA loan guarantee of up to $54.5 million will be provided to California-based Sapphire Energy under the Farm Bill programme for a project in Columbus, New Mexico, to demonstrate the process of producing jet fuel and diesel from algae cultivated in ponds. About $50 million will come as grant from the ARRA for the project.
