$105m USDA loan guarantee offer for Poet

In the US, ethanol producer Poet has been offered a conditional commitment for a $105 million (€75 million) loan guarantee from the US Department of Energy (DoE).

If finalised, the loan will go towards building a biofuel production plant in Emmetsburg, Iowa, that will convert corncobs, leaves, husks and stalks into 25 million gallons a year of cellulosic ethanol.

'This project will help decrease our dependence on oil, create jobs and aid our transition to clean, renewable energy that is produced here at home,' says US energy secretary Steven Chu, who announced the offer on 7 July 2011. 'The innovations used in this project are another example of how we are seizing the opportunity to create new economic opportunities to win the clean energy future.'

'Financing has been one of the biggest challenges to scaling up cellulosic ethanol and the offer for a conditional commitment for a loan guarantee from DoE's Loan Programs Office brings us one step closer to commercial production,' says Poet's CEO Jeff Broin. 'We are pleased DOE has offered to support the development of cellulosic ethanol.'

'Cellulosic ethanol holds tremendous promise for America,' continues Broin. 'There is more than one billion tonnes of biomass available each year that could be used to make enough cellulosic ethanol to completely displace oil imports.

Poet broke ground on the facility in 2010. The finalisation of the loan guarantee will see construction remain on schedule for completion in 2013.