March 1, 2007
U.S. Department of Energy investing in six biorefinery projects
Washington, D.C. – The U.S. Department of Energy (DOE) has announced that it will invest up to US$385 million for six biorefinery projects over the next four years. When fully operational, the facilities are expected to produce more than 130 million gallons of cellulosic ethanol per year.
The investment is in line with a federal goal of making cellulosic ethanol cost-competitive with gasoline by 2012; along with increased fuel efficiency, the ethanol is expected to reduce America’s gasoline consumption by 20 per cent in ten years.
Funding for the project is an integral part of a Biofuels Initiative, which will lead to the wide-scale use of non-food-based biomass, such as agricultural waste, trees, forest residues and perennial grasses.
Combined with the industry cost share, more than US$1.2 billion will be invested in the six biorefineries, which will be located in Kansas, Florida, California, Iowa, Idaho and Georgia.