Under a new federal program, acreage in Arkansas, Missouri, Ohio and Pennsylvania will be designated to grow giant miscanthus, a sterile hybrid warm-season grass that can be converted into energy to be used for heat, power, liquid bio-fuels, and bio-based products.
“Renewable, home-grown, clean energy from American producers is vital to our country's energy future because it reduces our reliance on foreign oil and creates good-paying production jobs that cannot be exported,” said US Agriculture Secretary Tom Vilsack as he kicked off the program Wednesday.
He estimated that the growth and conversion of the grass into energy could create nearly 4,000 jobs and that new conversion facilities could earn about $50 million a year.
Vilsack said there is also the possibility that the projects will lead to the establishment of "green hubs" in the surrounding areas leading to other green industries, including green industrial parks.
Yields for biomass from giant miscanthus are expected to range between 10 and 12 tons of dry matter per acre and can be as high as 15 tons per acre.
The Agriculture Department will provide financial incentives to eligible agriculture producers to establish dedicated energy crops. A project area must have specific boundaries that are approved by the Secretary of Agriculture.
Earlier this year, the department established similar project areas comprised of 50,000 acres in 39 counties in central and western Missouri and eastern Kansas.
Selected producers are eligible for reimbursements of up to 75 percent of the cost of establishing a perennial bio-energy crop. They can receive up to five years of annual payments for herbaceous crops (annual or perennial) and up to 15 years of annual payments for woody crops (annual or perennial).
The sign-up period for these project areas will begin on 20 June 2011. The deadline to sign up for the project areas will be announced at a later date.
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