Kentucky Companies Benefit from a Portion of $44 Million Advanced Biofuel Bump from USDA

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The U.S. Department of Agriculture (USDA) announced in October $44.6 million in payments for 156 advanced biofuel producers across the country to support the production and expansion of advanced biofuels.

"This funding will help local producers increase the production and availability of renewable energy and thus help our nation begin to reduce its reliance on foreign oil," said Agriculture Secretary Tom Vilsack. "Just as importantly, USDA's support will help to further develop the nation's growing biofuels industry and generate green jobs and economic growth."

The funding is being provided through USDA's Bioenergy Program for Advanced Biofuels program, which makes payments to eligible producers to support and ensure the expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose; crop residue; animal, food and yard waste material; biogas (landfill and sewage waste treatment gas); vegetable oil, and animal fat. Through this and other programs, USDA is working to support the research, investment and infrastructure necessary to build a biofuels industry that creates jobs and conserves natural resources across America, officials say.

For example, in Dubuque, IA, Western Dubuque Biodiesel LLC received a $487,871 payment. This biodiesel production facility produces 30 million gallons per year using soybean oil, canola oil and tallow esters as feedstock. And in Kinsale, VA, the Potomac Supply Corporation received a $36,530 payment for producing two types of advanced biofuels: fuel pellets and dry kiln. Both are made from clean pine chips, sawdust and shavings feedstock. The department says the payment to the two facilities helped save a total of 28 jobs.

Kentucky companies that will receive USDA funding:

•     Griffin Industries, Inc.: $86,099.81 for Biofuel From Waste Products.
•     Owensboro Grain Company, LLC: $1,026,463.07 for Biodiesel Trans Esterification.
•     Somerset Hardwood Flooring: $49,449.09 for Pellets.
•     Southern Kentucky Pellet Mill, Inc. : $6,572.64 for Pellets.

For more information, visit the USDA's news release web page.