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WASHINGTON, Oct. 21, 2013 –Agriculture Secretary Tom Vilsack
today announced the availability of $181 million to develop
commercial-scale biorefineries or retrofit existing facilities
with appropriate technology to develop advanced biofuels. The
U.S. Department of Agriculture (USDA) remains focused on
carrying out its mission, despite a time of significant budget
uncertainty. Today's announcement is one part of the
Department's efforts to strengthen the rural economy.
"This financing will expand the number of commercial
biorefineries in operation in the U.S. that are producing
advanced biofuels from non-food sources," Vilsack said. "USDA's
Biorefinery Assistance Program is yet another way USDA is
helping to carry out the Obama Administration's
'all-of-the-above' energy strategy to develop every possible
source of American-made energy. But the benefits go beyond
reducing our dependence on foreign oil. These biorefineries are
also creating lasting job opportunities in rural America and are
boosting the rural economy as well."
The
Biorefinery Assistance Program was created through the 2008
Farm Bill and is administered by USDA Rural Development. It
provides loan guarantees to viable commercial-scale facilities
to develop new and emerging technologies for advanced biofuels.
Eligible entities include Indian tribes, State or local
governments, corporations, farmer co-ops, agricultural producer
associations, higher education institutions, rural electric
co-ops, public power entities or consortiums of any of the
above.
Sapphire Energy's "Green Crude Farm" in Columbus, N.M., is an
example of how this program is supporting the development of
advanced biofuels. In 2011, USDA provided Sapphire Energy a
$54.5 million loan guarantee to build a refined algal oil
commercial facility. In continuous operation since May 2012, the
plant is producing renewable algal oil that can be further
refined to replace petroleum-derived diesel and jet fuel.
According to the company, more than 600 jobs were created
throughout the first phase of construction at the facility, and
30 full-time employees currently operate the plant. The company
expects to produce 100 barrels of refined algal oil per day by
2015, and to be at commercial-scale production by 2018. After
receiving additional equity from private investors, Sapphire was
able to repay the remaining balance on its USDA-backed loan
earlier this year.
In 2011, USDA issued a $12.8 million loan guarantee to
Fremont Community Digester for construction of an anaerobic
digester in Fremont, Mich. The digester, which began commercial
operations late last year, is the largest commercial-scale
anaerobic digester in the United States. It has the capacity to
process more than 100,000 tons of food waste annually to produce
biogas and electricity. Biogas from the digester runs generators
that total 2.85 megawatts in capacity. The electricity produced
is sold to a local utility and is providing power for about
1,500 local homes.
Applications for biorefinery assistance are due by January
30, 2014. More information about how to apply is available in
the
October 2, 2013 Federal Register announcement or by
contacting the
USDA Rural Development National Office.
Since the start of the Obama Administration, the USDA
Biorefinery Assistance Program has provided approximately $684
million in assistance to support biofuels projects in eight
states.
Secretary Vilsack noted that today's funding announcements
are another reminder of the importance of USDA programs such as
the Biorefinery Assistance Program for rural America. A
comprehensive new Food, Farm and Jobs Bill would further expand
the rural economy, Vilsack added, saying that's just one reason
why Congress must get a Food, Farm and Jobs Bill done as soon as
possible.
President Obama's plan for rural America has brought about
historic investment and resulted in stronger rural communities.
Under the President's leadership, these investments in housing,
community facilities, businesses and infrastructure have
empowered rural America to continue leading the way –
strengthening America's economy, small towns and rural
communities. USDA's investments in rural communities support the
rural way of life that stands as the backbone of our American
values. President Obama and Agriculture Secretary Vilsack are
committed to a smarter use of Federal resources to foster
sustainable economic prosperity and ensure the government is a
strong partner for businesses, entrepreneurs and working
families in rural communities.
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