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November 02, 2011

USDA Announces $44 million in Advanced Biofuels Funding

The U.S. Department of Agriculture (USDA) announced on October 31 payments totaling $44.6 million for 156 advanced biofuel producers in 38 states to support the production and expansion of advanced biofuels. The funding is being provided through USDA's Bioenergy Program for Advanced Biofuels program.

Under the program, payments 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); and vegetable oil and animal fat. USDA is working to support the research, investment, and infrastructure necessary to build a biofuels industry that creates jobs and conserves natural resources.

In Dubuque, Iowa, Western Dubuque Biodiesel, LLC, received a $487,871 payment. The company's production facility produces 30 million gallons of biodiesel per year using soybean oil, canola oil, and tallow esters as feedstock. The operation is expected to save 18 jobs. And, in Kinsale, Virginia, the Potomac Supply Corporation received a $36,530 payment for producing two types of advanced biofuels: fuel pellets and dry kiln. Both are made from clean pine chips, sawdust, and shavings feedstock. The payment will help save 10 jobs. See the USDA press release.