USDA Supports Growers of Feedstocks for Advanced Biofuels

The U.S. Department of Agriculture (USDA) announced on July 27 a total of $19.4 million in payments to 125 advanced biofuel producers to support the production of advanced biofuels from a wide variety of non-food sources, including waste products. The funding will be provided through USDA's Bioenergy Program for Advanced Biofuels, which makes payments to eligible producers based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible feedstocks include crop residue; animal, food, and yard waste; vegetable oil; and animal fat.

For example, Somerset Hardwood Flooring in Somerset, Kentucky, will receive a $7,040 payment for producing wood pellets from residual sawdust from its hardwood flooring manufacturing process. The company produces about 40 tons of wood pellets annually. Likewise, FPE Renewables, LLC, based in Lyden, Washington, will receive a payment of $9,612 for using dairy waste to produce biogas, which is then converted to electricity. And Virginia Biodiesel Refinery in West Point, Virginia, will receive a payment of $7,900 for making biodiesel from soybean and recycled cooking oil.