Agriculture Secretary Tom Vilsack has announced a massive $500 million federal fund allocation aimed to enhance the production of American-made biofuel. In addition, 59 noteworthy biodiesel and ethanol infrastructure projects have been chosen to receive a generous $25 million in funding.
“By expanding the availability of homegrown biofuels, we are strengthening our energy independence, creating new market opportunities and revenue streams for American producers, and bringing good-paying jobs and other economic benefits to rural and farm communities,” Vilsack said.
The U.S. Department of Agriculture plans to allocate up to $500 million from President Joe Biden’s Inflation Reduction Act to drive the production of greener fuel in the United States.
The USDA’s Higher Blends Infrastructure Incentive Program (HBIIP) will be the main funding mechanism. This program supports rural projects that increase the output of ethanol and biodiesel made from American agricultural products.
To encourage facilities to switch to higher-blend fuels, grants will cover up to 75% or $5 million of total project costs. The fuels must have an ethanol content of more than 10% and a biodiesel content of more than 5%.
Starting from July 1, a total of $450 million will be available. This includes $67.5 million for transportation fueling facilities, such as fueling stations and freight transportation facilities, and $18 million for fuel distribution facilities, including terminal operations and depots. The application period will span five different periods between July 1 and September 30, 2024.
In December, 59 infrastructure projects received $50 million from the HBIIP funds. California secured the most projects, with 21 worth $7.7 million, followed by Minnesota with 17 projects awarded $8.6 million. Iowa came in third place, with eight projects receiving $2.1 million.
California continues its strong commitment to reducing transportation emissions with a focus on increasing the availability of ethanol and biodiesel at fuel pumps. In fact, 81% of the federal funding awarded to the state is dedicated to expanding biodiesel supplies manufactured and distributed within California.
AltAir Paramount, LLC, a fuel distributor, is the recipient of a $1.5 million grant. This grant will support the sale of an additional 10 million gallons of biodiesel from Elk Grove, California, located near major transportation routes. The funding will be used to enhance infrastructure, including upgrading spill protection, installing new pumps and piping, and improving storage tanks and truck loading facilities.
Crimson Renewable Energy, the largest biodiesel producer on the West Coast based in Denver, also received a grant of over $399,521. This funding will enable the expansion of biodiesel sales by 30.4 million gallons annually at their Bakersfield plant in California. The grant will be used to establish the necessary infrastructure, including a blending skid with two loading bays and an in-house blending system.
Amidi Petroleum Inc. received a portion of a $520,248 grant to enhance renewable fuel sales. This includes replacing biodiesel dispensers and storage tanks at a fueling station in Los Gatos, Santa Clara County, to accommodate the growing demand for renewable fuels.
Additional grants were awarded to cities such as Carmichael, Fontana, San Jose, and Snelling to further support biodiesel production and sales in California.
Minnesota’s push for renewable energy just received a major boost with a record-breaking $2.2 million grant awarded to Northern Fuel and Convenience Inc. The funds will be used to create a robust infrastructure that will aid in the sales and use of biodiesel and ethanol in the state. As part of the initiative, 17 B20 biodiesel dispensers and 13 biodiesel storage tanks will be installed at 10 fueling stations across Minnesota.
Sizable grants are also being allocated to spur biodiesel production in the Northeast as well. New Hampshire-based Sprague Operating Resources will receive a generous $1.2 million grant to expand biodiesel sales by 34 million gallons annually. This will involve retrofitting fuel storage tanks for biodiesel and incorporating state-of-the-art rack blending equipment in key locations such as the Bronx in New York and East Providence, R.I.
Fuel distributor Carmel Terminals Inc. of New York has also secured a significant $1 million grant to improve its infrastructure and increase annual biodiesel sales by 16 million gallons. The company is preparing to commission a cutting-edge system in New York that will improve the way biodiesel is distributed and sold.
Even travel plazas are getting in on the action. BP Kenosha Travel Plaza in Wisconsin has been awarded a grant of $259,853 to enhance their facilities and boost biodiesel sales by 1 million gallons annually.
Meanwhile, the Route 63 Travel Plaza Inc. in Chester, Iowa, is set to receive $310,750 to upgrade their ethanol and biodiesel storage tanks and replace outdated ethanol dispensers. These improvements will increase annual biofuel sales by 73,311 gallons.
In the South, Down to Earth Energy LLC of Monroe, Georgia, has secured a grant of $62,708 to upgrade their fueling stations. This will involve replacing and installing B20 biodiesel dispensers, resulting in a increase of 21,960 gallons in biodiesel sales each year.
These grants and initiatives highlight the growing commitment to renewable energy across the United States.
Source: Transport Topics
