A $91 million loan guarantee to finance an advanced biofuel plant in Rapides Parish, Louisiana is announced by US Department of Agriculture (USDA).
This partnership is with support from Obama Administration for home-grown energy sources. With USDA’s support, jobs will be created in rural areas leading to growing bio economy expansion, confirmed USDA authorities.
USDA has made a deal with Silicon Valley Bank to provide a $91 million Bio refinery Assistance Program loan guarantee to Cool Planet for construction of a biofuel plant at the Port of Alexandria in Louisiana.
In addition to USDA’s contribution, Cool Planet is receiving investments from Google Ventures, BP, ConocoPhillips, GE, Exelon and NRG Energy, which will be contributing $50 million in equity to the project.
USDA’s partnership with Cool Planet will help in streamlining the Bio refinery Assistance Program process.
The Cool Planet facilities will produce 8 – 10 million gallons of reformate per year, an ingredient in gasoline and jet fuel that can be added during the regular refinery process. Many biofuels are fuel additives that are blended into a finished product to oxygenate fuel.
Reformate enhances the energy content of gasoline, diesel, and jet fuel. Pine chips will be the feedstock source for the Cool Planet facility. Besides, it will produce biochar, a bioenergy byproduct with an ability to confiscate carbon and reduce atmospheric greenhouse gas levels.
Recently, USDA has issued a $105 million loan guarantee to Fulcrum Sierra Biofuels, to build a bio refinery in Nevada to produce jet fuel from solid waste. Similarly, USDA has awarded fund for other plants in Florida, Iowa, Michigan, North Carolina and Oregon. Sapphire Energy has paid off its USDA loan for a plant in New Mexico.
USDA’s Cool Planet finance is from the remainder of the Bio refinery Assistance Program funds allotted in the 2008 Farm Bill. An additional project financed from these funds will be announced later this month, which was extended in the 2014 Farm Bill covering bio-based renewable chemicals and bio-based product manufacturing.