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Thursday, September 09, 2010

USDA Promotes Biomass to Replace Fossil Fuels at Biorefineries

The USDA has announced the selection of a biorefinery producer to receive payments under a program to encourage the use of renewable biomass as a replacement for fossil fuels that provide process heat or power for biorefineries.

Lincolnway Energy, LLC, based in Nevada, Iowa, has been selected to receive a $1.9 million payment award. The company produces 55 to 60 million gallons per year of fuel-grade ethanol. The USDA payment will reimburse the firm for costs to modify a boiler to burn wood and other biomass.

USDA's Repowering Assistance Program was authorized under the 2008 Farm Bill and allows USDA to make payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of these eligible biorefineries. Biorefineries that were in existence when the Bill was enacted, June 18, 2008, are eligible to apply.

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