USDA announces payments to advanced ethanol producers

By Erin Voegele | November 19, 2012

On Nov. 16 the USDA announced more than $15.7 million in payments to 189 companies under USDA Rural Development’s Advanced Biofuel Payment Program. The program, which was established under the 2008 Farm Bill, provides payments to support the production and expansion of advanced biofuels. Eligible producers receive payments based on the amount of biofuel produced from certain types of renewable biomass, including cellulose, sugar, starch from sources other than corn, hemicellulose, lignin, waste materials, biogas, and non-food crops.

“These payments support the nation’s expanding alternative fuels industry by encouraging the use of renewable feedstocks and helping to create a stronger energy future,” said Agriculture Under Secretary for Rural Development Dallas Tonsager. “Advanced biofuels production is a key component of the President’s 'all-of-the-above' energy strategy, which is designed to reduce America’s reliance on foreign oil.”

Several companies received payments under the round of funding for the production of advanced ethanol, including:

- Pinal Energy LLC: $38,768

- Central Indiana Ethanol LLC: $111,719

- Arkalon Ethanol LLC: $747,934

- Bonanza Bioenergy LLC: $139.003

- Kansas Ethanol LLC: $243,938

- Nesika Energy LLC: $57,491

- Prairie Horizon Agri-Energy LLC: $150,942

- Reeve Agri Energy Inc.: $116,291

- Western Plains Energy LLC: $1,264,002

- Abengoa Bioenergy Corp.: $155,922

-  Chief Energy Fuel Inc.: $10,110

- Cornhusker Energy Lexington LLC: $12,105

- Kappa Ethanol LLC: $658

- Nugen Energy LLC: $6,364

- White Energy Inc.: $349,652

- MXI Environmental LLC” $3,987