Four Nebraska Biofuel Plants Receive USDA Payments

Four Nebraska Biofuel Plants Receive USDA Payments

Funds are support for advanced biofuels such as sorghum.

USDA's Rural Development in Lincoln has announced Fiscal Year 2013 payments support the production of advanced biofuel. Payments issued in Nebraska throughout the fiscal year total $3,374,309.

The assistance supports four Nebraska biofuel plants with advanced biofuel production at their production facilities. They are:

  • Ag Processing headquartered in Omaha received total payments of $3,347,923. The company produces biodiesel from soybean and other oils at facilities located in Sergeant Bluffs and Algona, Iowa and St. Joseph, Mo.
  • Cornhusker Energy Lexington received total payments of $4,513. The company operates an ethanol processing facility in Lexington. Ethanol produced from sorghum feedstock as opposed to corn qualifies as an advanced biofuel and therefore is eligible to receive payments under the Advanced Biofuel Producer Payment program.
  • Chief Ethanol Fuel received total payments of $17,674. The company operates an ethanol processing facility in Hastings and has also expanded the feedstock used in the production of ethanol to include sorghum.
  • KAAPA Ethanol received total payments of $4,199. The company operates an ethanol production facility near Minden. They have also taken advantage of the opportunity to expand the feedstock used in their plant to produce an advanced biofuel product. The company's sorghum-based ethanol production received payments under the Advanced Biofuel Producer Payment Program.

Agriculture Secretary Tom Vilsack notes that this funding is another reminder of the importance of USDA programs for rural America. A comprehensive new Food, Farm and Jobs Bill would further expand the rural economy, he says, but Congress must get the farm bill done as soon as possible, he says.

Because of EPA's decision nearly a year ago to define sorghum as an "advanced biofuel," several ethanol plants are considering using it as their feedstock.

The funding is provided through USDA's Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible facilities based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch.

In addition to the examples as noted in the payments above, eligible advanced biofuel may include ethanol produced from cellulosic sources such as crop residues, animal, food; and yard waste converted to biogas for sale as compressed gas or converted to electricity, wood waste materials converted to bioenergy pellets for sale as a fuel product, animal fats and vegetable or other oils converted to a biofuel product. Biofuel can be produced from a variety of non-food sources, including waste products.

TAGS: USDA Soybean
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