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USDA backs advanced biofuel producers

USDA is making $5.6 million in grants to 220 producers across the US to support the production of advanced biofuels.

The Department of Agriculture will also award over $4 million in additional grants in a bid to advance the bioeconomy and reduce the nation's reliance on foreign oil.

'Producing advanced biofuel is a major component of the drive to take control of America's energy future by developing domestic, renewable energy sources,' says Tom Vilsack, Agriculture Secretary.'These resources represent the Obama Administration's commitment to support an 'all-of-the-above' energy strategy that seeks to build a robust bio-based economy. Investments in biofuels will also help create jobs and further diversify the economy in our rural communities.'

The funding for producers is being provided through USDA's Advanced Biofuel Payment Programme, which was established in the 2008 Farm Bill. Eligible feedstocks, including crop residue; animal, food and yard waste; vegetable oil; and animal fat fall under this programme, where payments are made based on the amount of advanced biofuel produced from renewable biomass, other than corn kernel starch.