xcel
08-06-2006, 07:08 AM
The U.S. Agriculture Department has started guaranteeing Biorefinery loans for new plants under a program created in the 2002 farm bill. (http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20060806/BUSINESS01/60805004)
Philip Brasher – Des Moines Register - August 6, 2006
http://www.cleanmpg.com/photos/data/500/Iowa_Switchgrass.jpg
Iowa Switchgrass cut for Cellulosic Ethanol pilot plant.
Washington, D.C. - Not only are taxpayers subsidizing the production of biofuels, they're also taking some of the risk of building new plants.
Even as private capital has been rushing into the industry, the U.S. Agriculture Department has started guaranteeing loans for new plants under a program created in the 2002 farm bill.
So far, the loans are relatively small - the U.S. Agriculture Department set a cap on the guarantees of $10 million. However, the USDA is looking at increasing the limit to provide help for the next generation of biofuel refineries, including those that could make ethanol from cornstalks, switchgrass and other sources of plant cellulose.
"It's pretty apparent that $10 million is a limitation that quite frankly needs to be addressed in the context of where the industry is going," said Tom Dorr, the USDA's undersecretary for rural development.
State legislators in Iowa also may be asked to provide financial incentives to biorefineries.
The BIOWA Development Association, a business-backed group pushing for biomass projects, is considering asking the state Legislature to authorize $20 million in grants and land guarantees.
"We have more biomass than anyone else. We need to take this step to cellulosic," said Mike Ott, BIOWA's executive director.
Philip Brasher – Des Moines Register - August 6, 2006
http://www.cleanmpg.com/photos/data/500/Iowa_Switchgrass.jpg
Iowa Switchgrass cut for Cellulosic Ethanol pilot plant.
Washington, D.C. - Not only are taxpayers subsidizing the production of biofuels, they're also taking some of the risk of building new plants.
Even as private capital has been rushing into the industry, the U.S. Agriculture Department has started guaranteeing loans for new plants under a program created in the 2002 farm bill.
So far, the loans are relatively small - the U.S. Agriculture Department set a cap on the guarantees of $10 million. However, the USDA is looking at increasing the limit to provide help for the next generation of biofuel refineries, including those that could make ethanol from cornstalks, switchgrass and other sources of plant cellulose.
"It's pretty apparent that $10 million is a limitation that quite frankly needs to be addressed in the context of where the industry is going," said Tom Dorr, the USDA's undersecretary for rural development.
State legislators in Iowa also may be asked to provide financial incentives to biorefineries.
The BIOWA Development Association, a business-backed group pushing for biomass projects, is considering asking the state Legislature to authorize $20 million in grants and land guarantees.
"We have more biomass than anyone else. We need to take this step to cellulosic," said Mike Ott, BIOWA's executive director.