U.S. House proposes US$4.5 billion for biomass research, biorefineries
The Washington Post reports that the U.S. government would underwrite up to US$2 billion in construction of biorefineries and bioproduct plants under a House Agriculture Committee plan being considered today. The bioenergy package would authorize a total of US$4.5 billion for biomass research and loan guarantees to biofacilities through fiscal 2012. The Subcommittee on Conservation, Credit, Energy, and Research is scheduled to discuss the package today.
The aim of biorefineries is to convert biomass into a range of products (biofuels, green chemicals and bio-based materials) in an integrated and efficient way, via thermochemical and biochemical conversion processes (chart, click to enlarge). Such facilities are part of the gradual transition towards the bioeconomy, in which petroleum products are systematically replaced or augmented by renewable and clean plant based products.
Under the loan guarantee program, at least 14 plants could be built. It would allow US$1 billion for projects costing up to US$100 million each and US$1 billion for projects costing US$100 million to US$250 million each.
Guarantees could cover up to 90 percent of the principal and interest on a loan for development and construction of biofacilities, said a draft prepared for the subcommittee. It says Congress would authorize the guarantees if lawmakers are unable to tap a reserve fund that requires offsets for all spending.
Major proposals in the package, along with the loan guarantee program, are:
energy :: sustainability ::bioenergy :: biofuels :: biomass :: biorefinery :: green chemistry :: bioeconomy :: U.S.
Like the loan guarantees, the three research and development programs would be financed by the reserve fund if possible. If not, Congress would be asked to appropriate the money.
Besides the funding proposed by Agriculture Committee leaders, the 2005 energy law calls for $200 million a year in research and development on biomass.
The funds come after a series of grants for bioenergy and biorefining programs made available by the U.S. Department of Energy earlier this year, which totalled US$385 million for six biorefinery projects over the next four years (previous post).
The aim of biorefineries is to convert biomass into a range of products (biofuels, green chemicals and bio-based materials) in an integrated and efficient way, via thermochemical and biochemical conversion processes (chart, click to enlarge). Such facilities are part of the gradual transition towards the bioeconomy, in which petroleum products are systematically replaced or augmented by renewable and clean plant based products.
Under the loan guarantee program, at least 14 plants could be built. It would allow US$1 billion for projects costing up to US$100 million each and US$1 billion for projects costing US$100 million to US$250 million each.
Guarantees could cover up to 90 percent of the principal and interest on a loan for development and construction of biofacilities, said a draft prepared for the subcommittee. It says Congress would authorize the guarantees if lawmakers are unable to tap a reserve fund that requires offsets for all spending.
Major proposals in the package, along with the loan guarantee program, are:
- US$1.5 billion for fiscal 2008-12 for bioenergy research into crops and cellulosic biomass, mill residues and agricultural and forest residue including used vegetable oils and animal waste;
- US$500 million during fiscal 2008-12 for biomass research, mostly on less costly and more efficient ways to use cellulose in biofuels and bioproducts;
- US$500 million in grants for development and use of renewable energy in rural areas during fiscal 2008-12.
energy :: sustainability ::bioenergy :: biofuels :: biomass :: biorefinery :: green chemistry :: bioeconomy :: U.S.
Like the loan guarantees, the three research and development programs would be financed by the reserve fund if possible. If not, Congress would be asked to appropriate the money.
Besides the funding proposed by Agriculture Committee leaders, the 2005 energy law calls for $200 million a year in research and development on biomass.
The funds come after a series of grants for bioenergy and biorefining programs made available by the U.S. Department of Energy earlier this year, which totalled US$385 million for six biorefinery projects over the next four years (previous post).
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