USDA announces $80M in advanced biofuel producer payments

In Washington D.C., the U.S. Department of Agriculture announced plans to grant $80 million this year to 163 companies that produce biofuel from alternative sources such as animal fats and wood chips.

The amount of each company’s payment is based on how much biofuel the company produces from sources other than corn. For example, Pennsylvania-based Smarter Fuel, Inc., will receive about $4.8 million as it produces biofuel from waste products, and Kansas-based Ese Alcohol will receive roughly $81,000 as it uses leftover seed to make ethanol.

The $80 million in payments are the fiscal year 2010 installment for the “Advanced Biofuel Producer Payments” program and the USDA is currently evaluating companies for FY 2011 payments. The payments were authorized in the 2008 farm bill by Congress, and are meant to “ensure an expanding supply of domestic energy.”