Vilsack announces new biorefinery assistance program
July 16, 2015 |07:18 PM
Agriculture Secretary Tom Vilsack announced today that USDA is accepting applications for funding USDA under the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program, which was formerly known as the Biorefinery Assistance Program.
"This critical financing will enhance our efforts to build a robust, rural bioeconomy by helping to expand the availability of biobased products and to increase the number of commercial-scale biorefineries in the country," Vilsack told stakeholders who were gathered at USDA’s headquarters
Rural Business Cooperative Service Administrator Lillian Salerno speaks to biorefinery stakeholders at USDA today. (Jerry Hagstrom/The Hagstrom Report)
At the seminar, Rural-Business Cooperative Service Administrator Lillian Salerno praised the private sector investors for their early interest in biobased industries.
“There is an unknown value of investment in this endeavor that we can’t put a price on,” Salerno said.
The new program, which is known as “Section 9003,” provides loan guarantees of up to $250 million to construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and biobased product manufacturing facilities, USDA said in a news release.
Two funding cycles are being held. Applications for round one are due October 1. Applications for the second round are due April 1, 2016. (For information on how to apply, see page 38432 of the July 6, 2015 Federal Register.)
USDA noted that the “9003” program has been expanded so that biorefineries are now able to receive funding to produce more renewable chemicals and other biobased products in addition to advanced biofuels and biobased product manufacturing facilities are eligible to convert renewable chemicals and other biobased outputs into “end-user” products.
USDA noted it released a report on June 17 that shows America's biobased industry is generating substantial economic activity and creating American jobs. According to the report, the U.S. biobased industry contributed four million jobs and nearly $370 billion to the American economy in 2013 alone.
Biotechnology Industry Organization President and CEO Jim Greenwood, who participated in a panel discussion, noted that “many renewable chemical companies still face challenges raising the private capital necessary for commercialization, and they are at a disadvantage when competing for capital without a level playing field in the public policy arena.”
“With proper implementation, we believe the Section 9003 program will provide greater access to capital and equity for biorefineries that primarily produce renewable chemicals and biobased products and will help spur the private investment needed to finance important new innovations that are on the horizon,” Greenwood said.
"This critical financing will enhance our efforts to build a robust, rural bioeconomy by helping to expand the availability of biobased products and to increase the number of commercial-scale biorefineries in the country," Vilsack told stakeholders who were gathered at USDA’s headquarters
At the seminar, Rural-Business Cooperative Service Administrator Lillian Salerno praised the private sector investors for their early interest in biobased industries.
“There is an unknown value of investment in this endeavor that we can’t put a price on,” Salerno said.
The new program, which is known as “Section 9003,” provides loan guarantees of up to $250 million to construct and retrofit commercial-scale biorefineries and to develop renewable chemicals and biobased product manufacturing facilities, USDA said in a news release.
Two funding cycles are being held. Applications for round one are due October 1. Applications for the second round are due April 1, 2016. (For information on how to apply, see page 38432 of the July 6, 2015 Federal Register.)
USDA noted that the “9003” program has been expanded so that biorefineries are now able to receive funding to produce more renewable chemicals and other biobased products in addition to advanced biofuels and biobased product manufacturing facilities are eligible to convert renewable chemicals and other biobased outputs into “end-user” products.
USDA noted it released a report on June 17 that shows America's biobased industry is generating substantial economic activity and creating American jobs. According to the report, the U.S. biobased industry contributed four million jobs and nearly $370 billion to the American economy in 2013 alone.
Biotechnology Industry Organization President and CEO Jim Greenwood, who participated in a panel discussion, noted that “many renewable chemical companies still face challenges raising the private capital necessary for commercialization, and they are at a disadvantage when competing for capital without a level playing field in the public policy arena.”
“With proper implementation, we believe the Section 9003 program will provide greater access to capital and equity for biorefineries that primarily produce renewable chemicals and biobased products and will help spur the private investment needed to finance important new innovations that are on the horizon,” Greenwood said.
- USDA Rural Development — Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
- Federal Register — Notice of Solicitation of Applications for the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program
- Economic Impact Analysis of the U.S. Biobased Products Industry
