USDA Unveils $50 Mil. Effort For Production/Use of Biofuels

July 21, 2009 07:00 PM

Pro Farmer Editors

USDA is accepting applications for up to $50 million in projects to promote the continued production and use of biofuels, USDA announced Tuesday.

This $50 million in 2008 Farm Bill money will advance two USDA efforts: $20 million under to provide financial incentives to biorefineries to replace fossil fuels used to produce heat or power at their facilities with renewable biomass; and $30 million to provide payments to eligible advanced biofuel producers to encourage the increased production and use of biofuels.

Applications for the advanced biofuels program are due Aug. 11; applications for the biorefineries to replace fossil fuels are due Nov. 1. More information is available at or in the June 12 Federal Register.

Biorefineries and advanced biofuel biorefineries must be located in a rural area and must have been in operation before the enactment of the 2008 Farm Bill (June 2008). The biorefineries will receive funding based on the amount of fossil fuel replaced, percentage of fossil fuel usage reduced, and the cost-effectiveness of the system. The advanced biorefineries will receive funding based on the amount of advanced biofuels production. These projects are expected to help biorefineries reduce energy costs and consumption; necessary steps toward meeting our nation's critical energy needs.


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