News release from the USDA:
USDA Announces Funding for Two Renewable Energy Programs
WASHINGTON, Feb. 3, 2012 — Agriculture Secretary Tom Vilsack today announced the availability of funds for Fiscal Year 2012 for two key programs to encourage the use of renewable biomass and production of advanced biofuels. About $25 million will be made available through each program.
"President Obama has laid out a new era for American energy—an economy fueled by homegrown and alternative energy sources that will be designed and produced by American workers," said Vilsack. "These programs support that vision by helping biorefineries use renewable biomass as a replacement fuel source for fossil fuels and supporting advanced biofuel producers as they expand production."
The Repowering Assistance Program provides approximately $25 million in funding to biorefineries that have been in existence on or before June 18, 2008. The purpose of the program is to provide a financial incentive to biorefineries to use renewable biomass in place of fossil fuels used to produce heat or power. By providing this assistance, USDA is helping these facilities install new systems that use renewable biomass.
The amount of the payment will be based on (1) the cost effectiveness of the renewable biomass system; and (2) the percentage reduction in fossil fuels used by that biorefinery. The maximum amount an individual biorefinery can receive under the Notice is 50 percent of total eligible project costs up to a maximum of $10 million.
Eligible costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees. The application deadline for this program to receive funds for Fiscal Year 2012 is June 1, 2012. For additional details, please see pages 5232 through 5234 of the February 2, 2012, Federal Register, or go to http://www.gpo.gov/fdsys/pkg/FR-2012-02-02/pdf/2012-2244.pdf.
USDA also announced the availability of up to $25 million to make payments to advanced biofuels producers who expect to produce eligible advanced biofuels at any time during Fiscal Year 2012. To be eligible for these funds, an advanced biofuels producers must have enrolled in the program by October 31, 2011, even if the producer has an existing contract with the Agency.
Payments will be made to producers of advanced biofuels derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas.
Contract payments will be made quarterly. For additional details, please see pages 5229 through 5232 of the February 2, 2012, Federal Register, or go to http://www.gpo.gov/fdsys/pkg/FR-2012-02-02/pdf/2012-2240.pdf.
Both of the programs referenced in the Federal Register are important parts of achieving the Obama Administration goal to increase biofuels production and use.
The Obama Administration is working to promote domestic production of renewable energy to create jobs, reduce our dependence on foreign oil, reduce emissions, and build a stronger rural economy. Today, Americans import just over half of our transportation fuels – down from 60 percent when President Obama took office – but we can do more to meet the President's goal of reducing our net fuel imports by one-third by 2025. At Secretary Vilsack's direction, USDA is working to develop the national biofuels industry by producing energy from non-food sources in every region of the country. We are conducting and encouraging research into innovative new energy technologies and processes, helping companies build biorefineries – including the first ever commercial-scale cellulosic biofuel facilities – and supporting farmers, ranchers, and businesses taking risks to pursue new opportunities in biofuels. Along with Federal partners, we're establishing an aviation biofuels economy, and have expedited rules and efforts to promote production and commercialization of biofuels.
USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an active portfolio of more than $165 billion in affordable loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.
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Showing posts with label biorefineries. Show all posts
Showing posts with label biorefineries. Show all posts
Monday, February 6, 2012
Tuesday, December 13, 2011
Bioenergy Pumps New Life into Pulp and Paper Mills
From the website of the U.S. Dept. of Energy. Personally, I find this announcement to be rather unsatisfying. Which biofuels are they producing? Ethanol? Biodiesel? What processes are they using? What are the break-even costs of the finished products and how do those compare with similar products produced by conventional means?
I am all for turning wastes into useful products, but we need more information than what this announcement provides.
Old Town Fuel and Fiber, a former pulp mill, converts a portion of
the wood chips used to make pulp to biofuels. |
Energy Department photo.
I am all for turning wastes into useful products, but we need more information than what this announcement provides.
Bioenergy Pumps New Life into Pulp and Paper Mills
December 13, 2011
Old Town Fuel and Fiber, a former pulp mill, converts a portion of
the wood chips used to make pulp to biofuels. |
Energy Department photo.
Despite Americans’ voracious appetite for paper products -- a staggering 700 pounds per person annually -- America’s pulp and paper industry has been struggling as of late due to competition from countries where environmental standards are less stringent and labor rates are lower. To stem plant closings and retain American jobs, the Energy Department’s Biomass Program is helping the industry diversify by producing bio-based products such as biofuels and bio-based chemicals.
We started in Maine, which is the second leading paper-making state by volume, producing three million tons of pulp in 2009. Today, there are nine paper companies employing approximately 7,400 people with an average annual salary of over $63,000. However, due to the weak economy and overseas competition, the current industry is struggling to stay afloat.
The struggle of paper mills in this region is distilled in the story of Penobscot Chermical Fiber Company. In 1882, a saw mill in Old Town, Maine, began using its wood byproducts to produce fiber as a commercial product. This repurposing of the mill created a new venture which became the Penobscot Chemical Fiber Company, a staple of the community that produced pulp fiber and quality jobs for over 100 years.
However, in 2006 the economic pressures became too great and the last owner, Georgia-Pacific Corporation, officially shut down the mill – costing 400 workers their jobs in the process. But where many saw a dying industry, a small group of investors saw potential. That same year, they bought the mill and submitted a proposal to the Energy Department to convert a portion of the wood chips used to make pulp to biofuels. Its application was selected and since then the mill has reopened as Old Town Fuel and Fiber and 300 people were rehired. The management team has been working with us as part of the Biomass Program’s Integrated Biorefinery portfolio to re-purpose the site to produce fuel, fiber and other products.
This might seem like an isolated example, but the entire pulp and paper industry is well-positioned for this kind of bioenergy re-invention. They understand the technology to deconstruct wood, have an experienced and capable work force, and the biomass supply chain is already in place. Because the jobs are higher quality, they can also get support from state and local authorities. Many of these converted mills could be repurposed and commissioned within 12-15 months after approvals, saving jobs and providing economic opportunity across states such as Maine, Pennsylvania, Connecticut, New Hampshire, Massachusetts and New York.
We started in Maine, which is the second leading paper-making state by volume, producing three million tons of pulp in 2009. Today, there are nine paper companies employing approximately 7,400 people with an average annual salary of over $63,000. However, due to the weak economy and overseas competition, the current industry is struggling to stay afloat.
The struggle of paper mills in this region is distilled in the story of Penobscot Chermical Fiber Company. In 1882, a saw mill in Old Town, Maine, began using its wood byproducts to produce fiber as a commercial product. This repurposing of the mill created a new venture which became the Penobscot Chemical Fiber Company, a staple of the community that produced pulp fiber and quality jobs for over 100 years.
However, in 2006 the economic pressures became too great and the last owner, Georgia-Pacific Corporation, officially shut down the mill – costing 400 workers their jobs in the process. But where many saw a dying industry, a small group of investors saw potential. That same year, they bought the mill and submitted a proposal to the Energy Department to convert a portion of the wood chips used to make pulp to biofuels. Its application was selected and since then the mill has reopened as Old Town Fuel and Fiber and 300 people were rehired. The management team has been working with us as part of the Biomass Program’s Integrated Biorefinery portfolio to re-purpose the site to produce fuel, fiber and other products.
This might seem like an isolated example, but the entire pulp and paper industry is well-positioned for this kind of bioenergy re-invention. They understand the technology to deconstruct wood, have an experienced and capable work force, and the biomass supply chain is already in place. Because the jobs are higher quality, they can also get support from state and local authorities. Many of these converted mills could be repurposed and commissioned within 12-15 months after approvals, saving jobs and providing economic opportunity across states such as Maine, Pennsylvania, Connecticut, New Hampshire, Massachusetts and New York.
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