December 04,
2009
U.S.
Department of
Energy Secretary
Steven Chu and
Agriculture
Secretary Tom
Vilsack today
announced the
selection of 19
integrated
biorefinery
projects to
receive up to
$564 million
from the
American
Recovery and
Reinvestment Act
to accelerate
the construction
and operation of
pilot,
demonstration,
and commercial
scale
facilities. The
projects—in 15
states—will
validate
refining
technologies and
help lay the
foundation for
full
commercial-scale
development of a
biomass industry
in the United
States. The
projects
selected today
will produce
advanced
biofuels,
biopower, and
bioproducts
using biomass
feedstocks at
the pilot,
demonstration,
and full
commercial
scale. The
projects
selected today
are part of the
ongoing effort
to reduce U.S.
dependence on
foreign oil,
spur the
creation of the
domestic
bio-industry,
and provide new
jobs in many
rural areas of
the country.
"Advanced
biofuels are
critical to
building a
cleaner, more
sustainable
transportation
system in the
U.S." said
Secretary Chu.
"These projects
will help
establish a
domestic
industry that
will create jobs
here at home and
open new markets
across rural
America."
Joining
Secretary Chu,
Agriculture
Secretary
Vilsack noted
that USDA Rural
Development has
selected San
Diego,
California based
Sapphire Energy
to receive a
loan guarantee
for up to $54.5
million through
the Biorefinery
Assistance
Program to
demonstrate an
integrated algal
biorefinery
process that
will cultivate
algae in ponds,
and will use
dewatering and
oil extraction
technology to
produce an
intermediate
that will then
be processed
into drop-in
green fuels such
as jet fuel and
diesel. The
actual project
will be
constructed in
Columbus, New
Mexico.
"The
development of
renewable energy
is a critical
component of our
efforts to
rebuild and
revitalize rural
America," said
Secretary
Vilsack. "This
Farm Bill
program is
instrumental in
increasing our
energy
independence and
expanding new
technologies and
markets for
agricultural and
environmental
waste material."
The
Biorefinery
Assistance
Program,
authorized
through the 2008
Farm Bill,
promotes the
development of
new and emerging
technologies for
the production
of fuels that
are produced
from non-corn
kernel starch
biomass sources.
The program
provides loan
guarantees to
develop,
construct, and
retrofit viable
commercial-scale
biorefineries
producing
advanced
biofuels. The
maximum loan
guarantee is
$250 million per
project. The
loan guarantee
will be subject
to the
availability of
funds and
contingent upon
Sapphire Energy
meeting the
conditions of
the loan
agreement.
Of the nearly
$564 million in
Recovery Act
funding
announced today,
up to $483
million will go
to 14
pilot-scale and
4
demonstration-scale
biorefinery
projects across
the country. The
remaining $81
million will
focus on
accelerating the
construction of
a biorefinery
project
previously
awarded funding.
Collectively,
these projects
will be matched
with more than
$700 million in
private and
non-federal
cost-share
funds, for total
project
investments of
almost $1.3
billion.
The biofuels
and bioproducts
produced through
these projects
will displace
petroleum and
accelerate the
industry's
ability to
achieve
production
targets mandated
by the federal
Renewable Fuel
Standard (RFS).
These
investments will
help close the
gap between the
production from
the small number
of biorefineries
currently in
operation and
the aggressive
Renewable Fuel
Standard goals
for cellulosic
and advanced
biofuels.
