USDA to invest up to $100m to boost infrastructure for renewable fuel use

US Department of Agriculture (USDA) will invest up to $100 million (€91 million) in a Biofuels Infrastructure Partnership to support the infrastructure needed to make more renewable fuel options available to American consumers.

Specifically, USDA will administer competitive grants to match funding for state-led efforts to test and evaluate innovative and comprehensive approaches to market higher blends of renewable fuel, such as E15 and E85. States that are able to provide greater than a one-to-one ratio in funding will receive higher consideration.

'A combination of factors, including lower commodity prices and reduced demand for feed as the poultry industry recovers from highly pathogenic avian influenza, are creating uncertainty for America's corn and soyabean producers. With this partnership, USDA is helping to ensure the infrastructure is in place for consumers to access more renewable fuels, expand marketing opportunities for farmers, and grow America's rural economies,' says agriculture secretary Tom Vilsack.

Higher blends of renewable fuel offer significant potential for increasing the use of renewable fuels in the US petrol pool, but currently the typical gas pump can deliver fuel containing a maximum of 10% ethanol, limiting the amount of renewable energy consumers can use to fuel their cars.

The new partnership will help support the installation of fuel pumps capable of supplying higher blends of renewable fuel by partnering with states to fund innovative, public-private partnerships to test more comprehensive approaches to marketing such blends. This new investment seeks to double the number of fuel pumps capable of supplying higher blends of renewable fuel to consumers, such as E15 and E85.

The announcement marks USDA's latest effort to increase renewable fuel use in the US. To formally launch this infrastructure partnership, USDA will post a Notice of Solicitation of Applications in June.

SOURCE: USDA