Agriculture Deputy Undersecretary Doug O’Brien recently announced that the U.S. Department of Agriculture is making nearly $60 million in payments to 195 producers to support the production of advanced biofuel.
Seven Indiana producers received these payment amounts: Alternative Fuel Solutions, Huntington, $1,507, biodiesel trans esterification; Bio Town Ag, Reynolds, $5,852, anaerobic digester; Central Indiana Ethanol, Marion, $94,065, ethanol production; Integrity Biofuels, Morristown, $47,913, biodiesel trans esterification; Louis Dreyfus Agricultural Industries, Claypool, $3.72 million, biodiesel trans esterification; T and M Limited Partnership, Demotte, $3,049, anaerobic digester; and Union County Biodiesel Co., Newburgh, $17,831, biofuel from waste products.
“These payments represent the Obama administration’s commitment to support an ‘all-of-the-above’ energy strategy and to help create jobs,” O’Brien said. “Producing advanced biofuels is a major component of the effort to take control of America’s energy future by developing domestic, renewable energy sources.”
The funding is being provided through the Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill and re-authorized in the 2014 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuels produced from renewable biomass other than corn kernel starch. Examples of eligible feedstocks include, but are not limited to, crop residue; animal, food and yard waste; vegetable oil; and animal fat.
Through this and other USDA programs, the department is working to support the research, investment and infrastructure necessary to build a robust and lasting biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel. More than 300 producers in 47 states have received $279 million in payments since the program’s inception. It has supported the production of more than 4 billion gallons of advanced biofuel and the equivalent of more than 40 billion kilowatt hours of electric energy.
Producers across the country are yielding strong results. For example, Clover Hill Dairy in Campbellsport, Wisconsin, is receiving a $6,194 payment to operate its anaerobic digester, which was commissioned in 2007. In 2009, the company added a second generator and has since doubled the size of the facility. Accordingly, production has nearly doubled – to 2.7 million kilowatt hours per year. The dairy’s herd provides the manure to produce biogas, which fuels the generators that produce electricity. The excess electricity is purchased by a local utility and delivered to customers.