Three Nebraska Biofuel Facilities Earn USDA Grant Funds

Three Nebraska Biofuel Facilities Earn USDA Grant Funds

Two ethanol plants will test use of sorghum and Omaha-based processor will is producing biodiesel biofuel.

Three biofuels producers in Nebraska will receive a combined total of more than $1.4 million in payments as part of a USDA program in 38 states.

Doug O'Brien, acting Under Secretary for Rural Development, says the grants will support the production of advanced biofuels

Ethanol facilities across the Midwest have traditionally utilized corn as their primary feedstock for ethanol production, O'Brien says. Several plants, however, have found advanced biofuel production to be advantageous and have therefore incorporated grain sorghum into their feedstock.

Grain sorghum, under EPA definitions, is considered an advanced biofuel.

•Chief Ethanol Fuels, in Hastings, produces ethanol from sorghum at its ethanol facility located in Hastings. Chief has participated in the program for three years.  Chief Ethanol Fuel, Inc. will receive $16,314 in payments.

•Cornhusker Energy Lexington, LLC, also procures sorghum to produce advanced ethanol biofuel at its ethanol facility located in Lexington, Nebraska. Cornhusker Energy Lexington, LLC, which has participated in the program since 2011, will receive $2,037 in payments to offset the advanced biofuel production costs.

•Ag Processing Inc., headquartered in Omaha, Nebraska, produces biodiesel from soybean, canola and waste vegetable oil feedstock at their St. Joseph, Mo., Sargeant Bluffs, Iowa, and Algona, Iowa production facilities. API has participated in the program since 2009. Ag Processing, Inc. will receive $1,404,008 in payments. The payments help offset the costs associated with producing the advanced biodiesel biofuel. Biodiesel is made from an increasingly diverse mix of feedstocks, including used cooking oil, agricultural oils and animal fats.

"Producing advanced biofuels is a major component of the drive to take control of America's energy future by developing domestic, renewable energy sources," O'Brien says.

The funding is being provided through USDA's Bioenergy Program for Advanced Biofuels, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include but are not limited to crop residue; animal, food and yard waste material; vegetable oil; and animal fat.

Biofuel can be from a variety of non-food sources, including waste products.

To discuss the Bioenergy Program for Advanced Biofuels program in Nebraska, contact Deb Yocum at 402-437-5554 or [email protected].

TAGS: USDA Soybean
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