Farm Bill May Trigger Advanced Biofuels Production

Biotechnology Industry Organization (BIO) President & CEO Jim Greenwood Friday thanked House and Senate leaders and issued the following statement:

"BIO and its member companies are working to make low-carbon biofuels from cellulose a reality in the very near future. The Farm Bill agreement will help both biofuel producers and farmers coordinate their efforts to deploy the technology for turning dedicated energy crops such as perennial grasses, trees and other non-food feedstocks into advanced biofuels."

As announced, the final Farm Bill Conference Report includes an important new incentive for the development of cellulosic biofuels, which can be produced from perennial grasses, trees, and other non-food feedstocks. With an abundant and diverse source of feedstocks available, cellulosic biofuels hold tremendous promise as a home-grown alternative to fossil-based fuels. But because cellulosic biofuels are emerging technologies, government assistance is needed to spur these fuels so they can be produced on a commercial scale. This package includes a new, temporary production tax credit for up to $1.01 per gallon, available through December 31, 2012, with an estimated cost of $403 million over the ten-year budget window.

The conference report will also include loan guarantees to assist the construction of commercial biorefineries for production of advanced biofuels. It also creates a Biomass Crop Assistance Program that will help farmers transition to growing cellulosic energy crops for these biorefineries. Lastly, it continues funding research and development into making advanced, low-carbon biofuels cost-competitive for consumers.

BIO supports the production of ethanol from all feedstocks. Biotechnology is helping to increase corn and soybean yields, convert corn starch and crop residues into ethanol more efficiently, and develop new "green" non-food feedstocks for low-carbon advanced biofuels. With ongoing advances in biotechnology, biofuels can help America meet nearly half its transportation-fuel needs by the middle of this century.

View the USAGNet story by clicking here.

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