USDA to invest $500 mn in biofuel projects

USDA plans to invest up to $500 million in biofuel infrastructure projects. The first set of 59 projects intended to increase the availability of domestic biofuels released. Funding for the initiative will come from the Inflation Reduction Act of 2022.

USDA earlier announced it was making $50 million available through its Higher Blends Infrastructure Incentive Program. The program’s goal is to increase higher blend ethanol availability by sharing costs to build and retrofit biofuel infrastructure. It awards grants to cover up to 75% or up to $5 million to help facilities convert to higher-blended fuels.

USDA would be investing an additional $450 million in the program starting July 1. Between then and September 2024, the agency will make $90 million available each quarter to support different fueling operations. USDA plans to have at least five applications windows during that time.

Approximately $67.5 million of the quarterly allotment will be used for transportation fueling facilities like fueling stations and retail stores as well as freight, rail and marine fleet facilities.

Around $18 million will be allocated to fuel distribution facilities. Up for $4.5 million will be used for home heating oil distribution facilities.

Included in the initial $25 million set of grants was $510,500 for Kimmes Enterprise in Iowa. That company will use its funds to replace four E15 dispensers and four ethanol storage tanks at fueling stations in Carroll, Rockwell City and Baxter. When complete, the upgrades are expected to increase annual ethanol sales by around 635,000 gallons.

New York’s Carmel Terminal will use its $1 million grant to install large storage tanks for B10 bioheat, B10 on-road diesel and B100 biodiesel. Together, these projects are expected increase annual biofuel sales by more than 16 million gallons.