Biofuel Company to receive grant funds to expand production
Anthony, NM (KTSM) — Agriculture Deputy Under Secretary Doug O’Brien today announced that USDA is making nearly $60 million in payments to 195 producers to support the production of advanced biofuel.
“These payments represent the Obama Administration’s commitment to support an ‘all-of-the-above’ energy strategy and to help create jobs,” O’Brien said. “Producing advanced biofuels is a major component of the effort to take control of America’s energy future by developing domestic, renewable energy sources.”
USDA Rural Development State Director Terry Brunner agreed by saying, “The funding through this program will help reduce dependence on foreign oil and increase development of domestic renewable energy.”
In New Mexico, Rio Valley Biofuels, LLC of Anthony, New Mexico will receive $2,613 in this round of funding from the advanced biofuel program.
Currently, the company is producing over 2,000 gallons of biodiesel a day and the new funding will help the company expand its production of biodiesel created from used vegetable oil.
The funding announced today is being provided through the Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill and reauthorized in the recently signed 2014 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; vegetable oil; and animal fat.
Through this program and others at USDA, the department is working to support the research, investment and infrastructure necessary to build a robust and lasting biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel.
More than 300 producers in 47 states have received $279 million in payments since the program’s inception.
It has supported the production of more than 4 billion gallons of advanced biofuel and the equivalent of more than 40 billion kilowatt hours of electric energy.