USDA to loan $181 million to build advanced biofuel refineries

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

The U.S. government on Monday announced $181 million in loan guarantees to build commercial-size refineries making advanced biofuels or to retrofit existing biorefineries to produce the cleaner-burning renewable fuels.

Since 2008, the Agriculture Department has provided $684 million through the Biorefinery Assistance Program to support projects in eight states. Applications for the latest round of funding are due by Jan. 30.

"This financing will expand the number of commercial biorefineries in operation in the United States that are producing advanced biofuels from non-food sources," said Agriculture Secretary Tom Vilsack.

USDA announced the funding at a time the federal mandate for biofuels is under challenge in Congress and in the bureaucracy. The Environmental Protection Agency has said it is considering whether to scale back the mandate, now dominated by corn-based ethanol.

Advanced biofuels, made from plant materials like wood and grasses and producing fewer greenhouse gases than current fuels, were expected to match corn ethanol by the end of this decade but have been far slower to develop than expected.

The Advanced Biofuels Association lists more than 200 plants, including biodiesel makers. Valero Inc. and Darling International are partners in a plant that opened in June to produce 137 million gallons a year of renewable diesel from animal fats and cooking oil.

Michael McAdams, head of the biofuels trade group, said the offer of loan guarantees would be "incredibly helpful" to smaller companies that want to expand production.

One maker of cellulosic biofuels, KiOR Inc., announced $100 million in financing on Monday to build a second refinery at Columbus, Mississippi, to convert wood chips into fuel. The original refinery produced 357,532 gallons of gasoline, diesel and fuel oil from Jan. 1 to Aug. 31. KiOR has a target of producing 13 million gallons a year at the plant.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (1) Leave a comment 

e-Mail (required)


characters left

Texas  |  October, 21, 2013 at 11:07 PM

Why do we need upgraded biofuel refineries, when we have this to ponder: The multinational grain companies, Cargill and ADM, who have wound up owning the majority of U.S. ethanol production facilities can finance their own dam "upgrades". Corn is cheap enough they should be making record profits, despite declining consumer usage of fuel in general. Without their 10 % crony gub'ment blenders mandate and tax break, where would they be?

Smooth Wall Grain Bins

Meridian’s SmoothWall bins are the ultimate storage bins, used to handle and store fertilizer, grain, feed and seed, and extend ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form