New USDA payments to boost advanced biofuels production

Up to 125 advanced biofuel producers will be receiving payments from the US Department of Agriculture’s (USDA) Bioenergy Programme for Advanced Biofuels.

Producers become eligible for payments from the programme based upon the amount of biofuels that are produced from renewable biomass other than corn starch.

Some biofuels eligible for the program include those produced from cellulose, lignin feedstocks and hemicellulose, plus those produced from non-corn based sugar or starch.

‘Advanced biofuels are a key component of President Obama’s ‘all-of-the-above’ energy strategy to reduce our reliance on foreign oil and take control of America's energy future,’ says agriculture secretary Tom Vilsack. ‘These payments represent help spur an alternative fuels industry using renewable feedstocks grown in America, broadening the range of feedstock options available to biofuels producers, helping to create an economy built to last.’

The majority of the 125 recipients represent the biodiesel industry, but several qualifying ethanol plants can also receive payment under this new announcement, including Reeve Agri Energy, Bonanza Bioenergy and Abengoa Bioenergy.