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USDA launches phase one of cellulosic ethanol programme

The US Department of Agriculture (USDA) has announced that it will make federal incentive payments available for harvesting and delivering wood waste for energy via the first phase of the new Biomass Crop Assistance Programme (BCAP).

The first phase of BCAP will provide matching payments to promote multiple roles across the sector including producers and land owners for the collection, harvest, storage, and transportation of renewable biomass to nearby biorefineries or biomass power plants. The incentive payments will cover biomass materials including corn stalks, corncobs and wood chips. Financial support of up to $45 (€32) per tonne will be available ensuring the collecting, storing, harvesting and hauling of biomass materials to facilities that produce heat, power, bio based products or biofuels such as cellulosic ethanol.

The USDA is still working on the second part of the BCAP programme which will pay farmers to plant energy-dedicated crops, such as switchgrass, within close proximity to existing biorefineries. The USDA hopes to get phase two of the programme up and running in 2010.




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