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USDA Announces A Notice of Contract Proposals to Support Advanced Biofuels Production
WASHINGTON, June 11, 2013 – Agriculture Secretary Tom Vilsack today announced the availability of up to $98.6 million to support the production of advanced biofuels, and an opportunity for eligible producers to submit applications. 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. “The United States is on the path to a cleaner, more secure energy future,” Vilsack said. “By helping producers to support and expand the production of advanced biofuels, USDA is ensuring that Rural America is a key component of President Obama’s ‘all-of-the-above’ energy strategy to reduce the Nation’s reliance on foreign oil.” The payments are provided through USDA Rural Development’s Bioenergy Program for Advanced Biofuels, commonly referred to as the Advanced Biofuel Payment Program. It was established in the 2008 Farm Bill to support the expansion of advanced biofuel production. Payments are made to eligible producers based on the amount of biofuel produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include crop residue; animal, food and yard waste; vegetable oils; and animal fat. Through the Bioenergy Program for Advanced Biofuels and other programs, USDA is working to support the research, investment and infrastructure necessary to build a biofuels industry that creates jobs and produces renewable fuel. Since 2009, more than 275 eligible producers in 44 states have received payments. Producers use the payments to offset production costs and in some instances expand their operations. For example, in 2012, Sequential-Pacific Biodiesel, a biodiesel facility based in Salem, Ore., increased its annual production by approximately 1 million gallons, or about 20 percent. Sequential-Pacific primarily uses locally sourced waste vegetable oils in its production of biodiesel. The support USDA Rural Development provided through its Bioenergy Program for Advanced Biofuels helped the company buy equipment that increased the speed of production and pre-treatment of feedstock. Producers who did not apply for payments during the October 2012 application window may now apply for payments for third and fourth quarter fiscal year 2013 production as well as for any applicable incremental production. Applications received by July 11, 2013 will be considered for Fiscal Year 2013 funds. Complete details on how to apply and on available funding are found on Page 34975 of the June 11 Federal Register, http://www.gpo.gov/f…/2013-13778.pdf . 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. USDA, through its Rural Development mission area, has a portfolio of programs designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible. # USDA is an equal opportunity provider and employer. To file a complaint of discrimination, write: USDA, Office of the Assistant Secretary for Civil Rights, Office of Adjudication, 1400 Independence Ave., SW, Washington, DC 20250-9410 or call (866) 632-9992 (Toll-free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377-8642 (Relay voice users). Last Date Modified: 06/11/2013 Continue reading
Switchgrass As Jet Fuel For Navy Fighters?
Switchgrass is on the forefront of biomass technology and it could be converted into jet fuel to power Navy planes and more. The National Renewable Energy Laboratory (NREL), run by the Energy Department, is looking into ways that switchgrass could be used to fuel jets. To achieve this goal, the group has partnered with the U.S. Navy, Cobalt Technologies, and the Show Me Energy Cooperative. Producing jet fuel from biomass like switchgrass is not new. However, before jets start flying on fuel made from the grass, production would have to be both affordable and available in quantities large enough to make economic sense. “This can be an important step in the efforts to continue to displace petroleum by using biomass resources. We’re converting biomass into sugars for subsequent conversion to butanol and then to JP5 jet fuel,” Dan Schell, NREL manager for bioprocess integration research and development, said. The Department of Energy is funding four separate projects to find a renewable source of biomass that could be turned into fuel to power both land vehicles and airplanes. Switchgrass is a wild grass that grows in all latitudes of the United States and Mexico, but is found primarily in the prairies. If this wild grass could be successfully used for the production of jet fuel in the large-enough quantities, it would provide a green alternative to fossil fuels, and would not require the use of a food stock like corn. Producing jet fuel from switchgrass would produce 95 percent less greenhouse gases than refining fossil fuels. The grass is collected by the Show Me Energy Cooperative, and then converted into sugars at the NREL through the use of enzymes, after pre-treating with a weak acid. The sugars are then fed into fermenters built by Cobalt Technologies with a capacity of nearly 2,400 gallons. There, they are converted into butyl alcohol (butanol) through the action of microorganisms. Using Navy know-how and catalysts, the alcohol is converted into jet fuel back at NREL. Switchgrass grows throughout Kentucky, where it is also being studied for use as an alternative fuel, if only as biomass to be directly burned. There, researchers from the University of Kentucky College of Agriculture have had some success in using the grass to produce green energy. “We learned a whole lot and found some useful applications for the forage until a consistent biomass market develops,” Ray Smith, University of Kentucky extension forage specialist, said. Interest in the grass from the Navy could be the market for which Smith is looking. If tests are successful, the Departments of Defense and Agriculture will assist companies who wish to produce the greener fuel. Continue reading
Green Investment Bank Mulling £50m Anaerobic Digestion Investment
Market report says technology is “at the heart” of its waste investment strategy By Will Nichols 11 Jun 2013 The Green Investment Bank (GIB) has said anaerobic digestion (AD) projects are “at the heart” of its waste investment strategy, revealing that it is currently considering direct investment of up to £50m in the sector. The news comes in a report the government-owned institution published yesterday assessing the investment potential of the UK’s AD sector, which currently amounts to around 106MW of capacity in operation or under construction, with a further 148MW in the latter stages of planning. The UK’s AD plants process over five million tonnes of food and farm waste each year, generating electricity, biogas, and a nutrient rich fertiliser known as digestate. AD has been hailed as a sustainable way of dealing with food and agricultural waste and according to the industry the technology is capable of meeting 10 per cent of the UK’s gas domestic demand, while contributing up to £3bn to the economy and creating 35,000 jobs. The GIB was set up to invest in green infrastructure and waste technologies have been designated as one of its priority sectors. The new report acknowledges that funding has been an issue for the UK AD sector, with some investors deterred by concerns over feedstock availability, the availability of power off-take agreements, and local markets for digestate. It also warns that the fact that the majority of AD facilities in the UK have been in operation for less than three years means the sector lacks an established and informed investor community. But the report argues that putting robust contracts in place with feedstock suppliers and energy companies will help AD plants reduce their investment risk profile and attract debt finance, not least from the GIB. “For debt investment in the sector, GIB is actively investigating the opportunity to directly participate in up to £50m of financing for AD projects which achieve the specific metrics identified above,” the report said, adding that the GIB will continue to make equity investments through its nominated waste fund managers, Foresight and Greensphere. Adrian Judge, the GIB’s managing director for waste and bioenergy, said AD offers a lot of potential for investors. “AD is rightly at the heart of the Government’s waste policies, and GIB’s waste investment strategy,” he said. “For organic waste, AD is a cost-effective and sustainable waste management option. “Although the UK market is still young and there are challenges for projects in delivering a consistent revenue stream, well operated AD facilities have the potential to achieve attractive commercial rates of return to both equity and debt providers.” In related news, three UK companies were yesterday awarded a share of £1.34m to help encourage bioenergy production from wetland biomass. Natural Synergies, AMW IBERS, and AB systems were among seven companies shortlisted for the scheme, each of which is focused on improving harvesting and biomass energy generation techniques from wetland areas. Supporters of biomass energy have long argued that wetlands could offer a sustainable source of biomass feedstock, as it ca be developed without impacting on productive agricultural land. Continue reading
