New federal biofuels program good for producers
Wisconsin ethanol producers will benefit from new program
Contact: Joshua Morby - 414.344.1733
MILWAUKEE, Wis. – A new $510 million, three-year joint investment by the U.S. Department of Agriculture, the U.S. Department of Energy and the U.S. Department of the Navy will provide new opportunities for Wisconsin’s biofuel producers.
The new program is targeting the development of next-generation biofuels for use in aviation and marine applications to power military aviation, ships and the country’s existing commercial aviation fleet.
“This program offers the type of support that our domestic biofuel producers need in order to reduce our reliance on foreign oil and expand existing capacity,” says Josh Morby, executive director of the Wisconsin Bio Industry Alliance.
As proposed, the new program requires a one-to-one private industry match to construct or retrofit existing biofuel refineries, many of which are located in rural areas of the country.
“Wisconsin’s nine large-scale ethanol plants are all located in more rural areas of the state, providing well-paying jobs for rural workers,” says Morby. “The nation can look to Wisconsin as an example of a state with a successful biofuel industry in place, but with room for further expansion and growth.”
Wisconsin ranks ninth in the nation in ethanol production with overall capacity of more than 500 million gallons. In 2010, Wisconsin’s $1.168-billion ethanol industry produced 462 million gallons of ethanol.
The United States imports more than $300 billion in crude oil annually, and price variables in those markets have had a direct effect on the military fuel budget. According to the Navy, every dollar per barrel increase adds $30 million annually to the Navy budget. This initiative is in keeping with the Navy’s goal of cutting its oil usage in half by 2025 by replacing petroleum-based fuels with biofuel options.
“We feel there is tremendous opportunity for Wisconsin’s producers to take part in this new program, and we are looking forward to working with the departments to engage our members in this opportunity,” says Morby.
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups, and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
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