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You are here: DOE Home > News 2009 > Press Releases > October - December 

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December 4, 2009 

Secretaries Chu and Vilsack Announce More Than $600 Million Investment in Advanced 

Biorefinery Projects 

Private company investment brings total to nearly $1.3 billion for 19 biorefinery projects to create 

jobs and new markets for rural America

Washington, D.C. – U.S. Department of Energy Secretary Steven Chu and Agriculture Secretary Tom 

Vilsack today announced the selection of 19 integrated biorefinery projects to receive up to $564 

million from the American Recovery and Reinvestment Act to accelerate the construction and 

operation of pilot, demonstration, and commercial scale facilities. The projects – in 15 states – will 

validate refining technologies and help lay the foundation for full commercial-scale development of a 

biomass industry in the United States. The projects selected today will produce advanced biofuels, 

biopower, and bioproducts using biomass feedstocks at the pilot, demonstration, and full commercial 

scale. The projects selected today are part of the ongoing effort to reduce U.S. dependence on 

foreign oil, spur the creation of the domestic bio-industry and provide new jobs in many rural areas of 

the country. 

“Advanced biofuels are critical to building a cleaner, more sustainable transportation system in the 

U.S.” said Secretary Chu. “These projects will help establish a domestic industry that will create jobs 

here at home and open new markets across rural America.” 

Joining Secretary Chu, Agriculture Secretary Vilsack noted that USDA Rural Development has selected 

San Diego, California based Sapphire Energy to receive a loan guarantee for up to $54.5 million 

through the Biorefinery Assistance Program to demonstrate an integrated algal biorefinery process 

that will cultivate algae in ponds, and will use dewatering and oil extraction technology to produce an 

intermediate that will then be processed into drop-in green fuels such as jet fuel and diesel. The 

actual project will be constructed in Columbus, New Mexico. 

 “The development of renewable energy is a critical component of our efforts to rebuild and revitalize 

rural America,” said Secretary Vilsack. “This Farm Bill program is instrumental in increasing our 

energy independence and expanding new technologies and markets for agricultural and environmental 

waste material.” 

 

The Biorefinery Assistance Program, authorized through the 2008 Farm Bill, promotes the 

development of new and emerging technologies for the production of fuels that are produced from 

non-corn kernel starch biomass sources. The program provides loan guarantees to develop, construct 

and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan 

guarantee is $250 million per project. The loan guarantee will be subject to the availability of funds 

and contingent upon Sapphire Energy meeting the conditions of the loan agreement. 

Of the nearly $564 million in Recovery Act funding announced today, up to $483 million will go to 14 

pilot-scale and 4 demonstration-scale biorefinery projects across the country. The remaining $81 

million will focus on accelerating the construction of a biorefinery project previously awarded funding. 

Collectively, these projects will be matched with more than $700 million in private and non-Federal 

cost-share funds, for total project investments of almost $1.3 billion. 

The biofuels and bioproducts produced through these projects will displace petroleum and accelerate 

the industry’s ability to achieve production targets mandated by the federal Renewable Fuel Standard 

(RFS). These investments will help close the gap between the production from the small number of 

biorefineries currently in operation and the aggressive Renewable Fuel Standard goals for cellulosic 

and advanced biofuels. 

 

Visit the complete list and descriptions of selected projects. 

Media contact(s):

(202) 586-4940 

Department of Energy - Secretaries Chu and Vilsack Announce More Than $600 Million ... Page 1 of 2

http://www.energy.gov/8352.htm 1/21/2010