The funding is being made available through the US Dept. of Agriculture’s Bio-refinery Assistance Program. The plant will be built by Fiberight, LCC of Blairstown, Iowa.
"This project is another step the Obama administration is taking to support production of a new generation of renewable fuels, in order to build an active bio-fuels and biomass production industry in every region of the country," Vilsack said. "Investments in renewable energy create jobs and reduce America's dependence on foreign oil."
USDA funding will be used to construct a 55,000 square foot facility that will produce cellulosic ethanol by converting municipal solid waste and other industrial pulps into advanced bio-fuels, as well as using conventional renewable bio-fuel derived from seed corn waste.
When operational, the facility is expected to produce approximately 3.6 million gallons of cellulosic ethanol per year. The process will use a cellulosic microbe to produce up to 15 percent more ethanol than traditional fermentation technology, and reduce energy inputs in the fermentation and distillation process.
Under the conditional commitment, Fiberight must meet specified conditions before the loan guarantee can be completed. Other funding comes from the State of Iowa. Fiberight also received a $2.5 million grant from the Iowa Power Fund in 2010.
The company will work with the Benton County, Iowa landfill to supply a portion of the feedstock for the project. The total project cost is estimated at $59.5 million. Fiberight, LLC was incorporated in 2007 for the purpose of converting an existing ethanol facility into a cellulosic ethanol facility in Blairstown.
USDA's Bio-refinery Assistance Program was authorized by Congress under the 2008 Farm Bill.
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