USDA Invites Applications for Biorefinery Loans
WASHINGTON - Applications are being accepted in the US for loan guarantees under the Biorefinery Assistance Program (Section 9003), authorised by the Food, Conservation, and Energy Act of 2008, ("the farm bill").
The Biorefinery Assistance Program is designed to promote the development of new and emerging technologies for the production of advanced biofuels.
The Biorefinery Assistance Program provides loan guarantees for the development, construction and retrofitting of viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project subject to the availability of funds.
Preference will be given to projects where first-of-a-kind technology will be deployed on a commercial scale. Advanced biofuels are defined as fuels that do not rely on corn kernel starch as the feedstock.
For example, research has shown that cellulosic ethanol production - a key next generation biofuel - may be produced from switch grass, corn stover, forest waste, fast-growing trees, woodchips, canola, algae and other plant material rather than from the edible part of crops such as corn. These energy crops require further research and development but they represent a key long-term component to a sustainable biofuels industry.
To be considered for funding in the first half of Fiscal Year 2009, applications must be completed and submitted no later than 31 December 2008.
The program will create energy related jobs in rural America and encourage economic development, along with promoting resource conservation and diversifying markets for agricultural and forestry products, including agricultural waste materials.
In addition to the announcement of program funds for this year, a notice is being published to invite comments on how to administer the program in future years.
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