BIO asks for production incentives

By | May 21, 2010
In a letter to House and Senate appropriators, the Biotechnology Industry Organization asked that production incentives for cellulosic biofuels be funded at the $25 million level for 2011. The existing cellulosic biofuel reverse auction program is a way to assist U.S. cellulosic ethanol producers in a targeted and affordable way, BIO said.

The U.S. DOE's Section 942 program was established in the Energy Policy Act of 2005 and supports cellulosic biofuels by per-gallon payments through a reverse auction process. "This program, if closely coordinated with other federal programs, can stimulate the private investment needed to build large-scale biorefineries to meet the energy production and greenhouse gas reduction goals of the United States," said Brent Erickson, executive vice president for BIO's industrial and environmental section. "Development of the advanced biofuels industry could produce hundreds of thousands of new green jobs, contributing more than $140 billion in economic growth by 2030. Rapidly increasing U.S. production of advanced biofuels is also a sound way to significantly reduce U.S. reliance on imported petroleum and carbon emissions associated with climate change."