US biofuels plant receives $1.8 million investment

A $1.8 million (€1.3 million) federal grant has been awarded to Clinton, North Carolina, for its water and sewer equipment at the city's cellulosic biofuels refinery.

The $200 million investment, which looks set to produce 20 million gallons per year of cellulosic biofuels, is expected to start production in October and be fully operational by the end of 2016.

The ethanol plant will use the same PROESA technology being used in the world's first commercial-scale cellulosic ethanol plant in Crescentino, Italy.

A range of different energy grasses, including biomass sorghum, switchgrass, miscanthus and Arundo donax, along with agricultural residues and wood chips will be used as feedstock at the North Carolina-based facility.

The grant received from the US Economic Development Administration is the latest contribution alongside those received from the US Department of Agriculture, the Italian owned engineering and technology company Biochemtex, and Novozymes.

This is the US's first full-scale ethanol facility relying on non-food cellulosic energy crops.