USDA seeks applications for funding to develop advanced biofuels

The US Department of Agriculture (USDA) is seeking applications for funding to help support the development of advanced biofuels, renewable chemicals and bio-based products, US Agriculture Secretary Tom Vilsack announced.

"The bioeconomy is a catalyst for economic development in rural America, creating new jobs and providing new markets for farmers and ranchers," Vilsack said.

He added: "Investing in the businesses and technologies that support the production of biofuels and bio-based 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.

The US Congress established the programme in 2008 to encourage the development of biofuels that use renewable feedstocks. The 2014 Farm Bill expanded the programme to include renewable chemicals and bio-based product manufacturing.

The programme now provides loan guarantees of up to $250 million (€228m) to develop, construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and bio-based product manufacturing facilities.

Obama Administration

USDA has provided $844 million in loan commitments to ten 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 San Diego-based energy firm, a $54.5 million loan guarantee to build a refined algal oil commercial facility.

Sapphire's "Green Crude Farm" in Columbus, New Mexico, 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.

US Navy

USDA is helping to develop the bioeconomy, which has the potential to spur unprecedented growth in the rural economy by creating opportunities for the production, distribution and sale of bio-based products and fuels.

For example, USDA has partnered with the US Department of Energy and the Navy to create advanced drop-in biofuels that will power both the Department of Defense and private-sector transportation throughout America.

Over the course of the Obama Administration, USDA has invested $332 million to accelerate research on renewable energy ranging from genomic research on bioenergy feedstock crops, to development of biofuel conversion processes and cost/benefit estimates of renewable energy production.