Biofuel Grants USDA

USDA $500M Investment to Expand Biofuel Infrastructure

USDA $500M Investment to Expand Biofuel Infrastructure

U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced plans for a substantial investment of up to $500 million. This funding, derived from President Biden’s Inflation Reduction Act, aims to bolster the availability of domestic biofuels and provide Americans with additional, cleaner fuel options at the pump.

“President Biden’s Inflation Reduction Act represents a historic investment in expanding clean energy, lowering costs for Americans, and building an economy that benefits working families and small businesses,” Vilsack stated. “Through the expansion of homegrown biofuels, we enhance our energy independence, create new market opportunities and revenue streams for American producers, and deliver economic benefits, including good-paying jobs, to rural and farming communities.”

In December 2022, the USDA made $50 million available from the Inflation Reduction Act to expand the use and availability of higher-blend biofuels via the Higher Blends Infrastructure Incentive Program (HBIIP). Today, Vilsack announced the inaugural awardees of 59 infrastructure projects set to receive a combined total of $25 million. The complete list of HBIIP awardees can be viewed on the USDA website.

Additionally, the USDA disclosed that it would start accepting applications in July for $450 million in HBIIP grants. These funds will further support the development of infrastructure necessary to lower costs for facilities involved in transportation fueling and biofuel-related distribution, including upgrades to pumps, dispensers, and storage tanks.

Among the award recipients announced today:

  • Kimmes Enterprises LLC will use a $510,500 grant in Iowa to replace four E15 dispensers and ethanol storage tanks at three fueling stations in Carroll, Rockwell City, and Baxter. This initiative is expected to increase annual ethanol sales by approximately 635,000 gallons.
  • Farmers Cooperative Oil Company in Minnesota will secure a $623,500 grant to replace nine E85 dispensers, two B20 dispensers, two ethanol storage tanks, and two biodiesel storage tanks at a fueling station in Barnesville. The project is expected to boost annual biofuel sales by nearly 122,000 gallons.
  • In New York, Carmel Terminals Inc. will utilize a $1 million grant to install bioheat and biodiesel storage tanks and associated infrastructure at a fuel distribution facility in Carmel. This project is anticipated to augment annual biodiesel sales by over 16 million gallons.

The USDA will announce additional awards in the upcoming weeks.

These announcements follow the recent EPA finalization of the highest-ever biofuel production targets, including growth in cellulosic biofuel, biomass-based diesel, advanced biofuel, and non-cellulosic advanced categories. This development represents a victory for energy independence and the rural economy, promising stability and growth in the biofuel market for years to come.

Photo by Raquel Pedrotti on Unsplash 

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