USDA pays USD 8.8m to advanced biofuel producers

The US Department of Agriculture (USDA) on Friday said it is providing USD 8.8 million (EUR 7.9m) of payments to support advanced biofuel production at renewable energy facilities in 39 states.

The funding comes from USDA's Advanced Biofuel Payment Program, under which quarterly payments are made based on the amount of fuel produced from feedstocks such as crop residue, food and yard waste, vegetable oil or animal fat. USDA has paid USD 308 million to 382 producers since the creation of the programme in 2008.

In the latest distribution of funds, Quad County Corn Processors Co-Op of Iowa, for instance, is getting a USD-2,011 payment to produce 660,000 gallons (2.5 million litres) of cellulosic ethanol from more than 39 million gallons of corn kernel fiber. Mississippi-based Scott Petroleum Corp is receiving USD 13,165 for the production of more than 2.6 million gallons of biodiesel from waste, non-food grade corn and catfish oil and poultry fat.

The biggest payment, of almost USD 3.9 million, goes to Rbf Port Neches LLC of Texas for biodiesel production.

"These payments not only help to spur biofuel production, but also protect the environment and help create jobs by building a renewable energy economy in rural areas," said agriculture secretary Tom Vilsack.

(USD 1.0 = EUR 0.898)

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