US Introduces New Plan for Biofuel Commercialization
US congress has approved a new bill providing a sum of $75 million to hasten commercialization of biofuels.This new legislation provides for a maximum of 30 % of construction cost of biorefineries producing "advanced" biofuels.In addition loan guarantees of $250 million for construction of such biorefineries has also been introduced .This bill also authorizes $150 million/year in discretionary funding .A new tax credit of $1.01/gallon for biofuel produced from wood ,grass and non-edible plant parts has been introduced.Interestingly,this tax credit is applicable for biofuel produced and consumed in US.
Increasing criticism form the international community,raging debates on "food or fuel"has given biofuels an ugly face.This bill has puts a great deal of emphasis on promotion of "advanced" biofuels or biofuels produced from sources other than corn kernel and also aims to promote production of cellulosic biofuels.Thus it may provide the necessary "facelift" to biofuels which may lead to favorable public opinion.
Tags: advanced biofuel, biofuel, funding, tax credit, US
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