This is an excerpt from EERE Network News, a weekly electronic newsletter.

December 19, 2012

New Energy Department Funding to Reduce Cost of Drop-in Biofuels

The Energy Department on December 14 announced up to $12 million in new funding for projects that aim to drive down the cost of producing gasoline, diesel, and jet fuels from biomass. These advanced biofuels can be blended with conventional petroleum fuels for use in traditional cars, trucks, and airplanes—giving U.S. consumers and businesses more options and helping to diversify the nation's energy economy.

The announced funding will support up to five research and development projects that will boost biofuel yields from non-food-based lignocellulosic feedstocks such as agricultural residues, fast-growing poplar trees, and switch grass. These projects will help improve the carbon, hydrogen, and separation efficiencies in bio-oil production. Successful applicants will provide a research and development plan to produce a hydrocarbon fuel blendstock at $3/gallon or less (gasoline equivalent). This funding opportunity is open to universities, national laboratories, industrial entities, and nonprofit organizations. See the Energy Department Progress Alert and the full funding opportunity announcement.