Kansas Biofuels Producers Share In Payments For Advanced Biofuels

Farm Bill authorizes payments to promote use of alternate feedstocks for biofuels production.

Published on: Oct 12, 2011

Kansas biofuel producers will get more than $8 million in payments authorized by the Bioenergy Program for Advanced Biofeuls title of the 2008 Farm Bill. Agriculture Secretary Tom Vilsack announced that USDA will make payments to more than 160 energy producers in 41 states to support and ensure the production and expansion of advanced biofuels.

"Renewable energy production will create tens of thousands of direct, American jobs; thousands more indirect jobs, and clean electricity to power millions of homes. The payments represent the continuing commitment of the Obama administration to work with producers to provide the biofuel necessary to reduce our nation's dependence on foreign energy sources," Vilsack said. "The payments support America's growing advanced biofuel industry."

Shared Payments For Advanced Biofuels
Shared Payments For Advanced Biofuels

The payments are authorized under the Bioenergy Program for Advanced Biofuels (Section 9005 of the 2008 Farm Bill) and are made to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

"Kansas ethanol plants are creating jobs and providing investments in rural Kansas communities," stated USDA Rural Development State Director Patty Clark.  "Through the 2008 Farm Bill, USDA Rural Development is able to invest in ethanol plants that help reduce our dependence on foreign oil and support area farmers."

In Kansas, more than $8 million in payments will be made to 11 energy producers through the Bioenergy Program for Advanced Biofuels.  Those include Arkalon Ethanon, Liberal, $1.8 million; Bonanza BioEnergy, Garden City, $1.1 million; Emergent Green Energy Inc., Minneola, $7,900; ESE Alcohol, Leoti, $81,000; Healy Biodiesel, Sedgwick, $10,000; Kansas Ethanol, Lyons, $2,300; Nesika Energy, Scandia, $139,000; Prairie Horizon Agri-Energy, Phillipsburg, $1.6 million, R-3 Energy, Cottonwood Falls, $10,000; Reeve AgriEnergy, Garden City, $600,000 and Western Plains Energy, Oakley, $660,000.

 "USDA's 9005 program helps ethanol producers continue their effort in research and development of new feedstocks for biofuels," stated Mike Chisam, Chairman of the Kansas Association of Ethanol Processors.

For additional information regarding USDA Rural Development programs, visit the Agency's website http://www.rurdev.usda.gov/KS, or call the Agency's State Office at 785-271-2700.