Biodiesel producers to receive advanced biofuel payments

By Erin Voegele | September 27, 2011

Agriculture Secretary Tom Vilsack has announced that the USDA will make payments to more than 160 biofuel producers in 41 states under the Bioenergy Program for Advanced Biofuels. The program, which was authorized under Section 9005 of the 2008 Farm Bill, makes payments to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn starch. Examples of eligible fuels include those produced using cellulose; crop residues; animal, food or yard waste; biogas, vegetable oils or animal fats.

"Renewable energy production will create tens of thousands of direct, American jobs; thousands more indirect jobs, and clean electricity to power millions of homes,” said Vilscak. “The payments I am announcing today represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation's dependence on foreign energy sources. The payments support America's growing advanced biofuel industry."

Ever Cat Fuels is one of the many biodiesel producers to receive payments under the 9005 program. According to the USDA, the company has been selected to receive $98,507. The payment will help Ever Cat Fuels offset the cost of producing approximately 881,000 gallons of biodiesel at its facility in Minnesota. The company is the first commercial plant to employ the Mcgyan process, and has an annual production facility of 3 million gallons. The USDA noted that the plant, which has been operational for two years, has created 20 full time jobs. Approximately 90 biodiesel producers nationwide are set to receive payments under the program.

“Renewable energy production creates jobs, powers homes and businesses and reduces our nation’s dependence on foreign energy sources,” said USDA Rural Development State Director Colleen Landkamer. “These payments support America’s growing advanced biofuels industry and will have a major impact right here in Minnesota.”

The National Biodiesel Board has spoken out in support of the program. "These payments will create jobs and economic activity while helping the biodiesel industry advance new technologies and improve efficiency," said Anne Steckel, NBB's vice president of federal affairs. "It's another example of this administration's strong commitment to boosting domestic production of advanced biofuels and securing our energy future." 


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