US agency pledges $19.4m for advanced biofuels producers

27 July 2012 21:04  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--US Agriculture Secretary Tom Vilsack announced payments of $19.4m (€15.7m) to 125 advanced biofuel producers across the country, the federal agency said on Friday.

Such fuels are made from nonfood sources, including waste products.

"Advanced biofuels are a key component of President Obama's all-of-the-above energy strategy to reduce the nation's reliance on foreign oil and take control of America's energy future," said Vilsack.

The funding is being provided through the US Department of Agriculture's (USDA) Bioenergy Program for Advanced Biofuels, which was established in the 2008 Farm Bill.

Under the programme, payments are made to eligible producers based on the amount of biofuels a recipient produces from renewable biomass other than corn kernel starch.

Examples of eligible feedstocks include crop residue; animal, food and yard waste; and disposable vegetable-oil and animal fat.

Biodiesel is made from an increasingly diverse mix of nonfood feedstocks, including recycled cooking oil, agricultural oils and animal fats, allowing most biodiesel producers to select from a choice of feedstocks if prices rise or supplies are limited, according to the USDA.

($1 = €0.81)

By: Leela Landress
+1 713 525 2653

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