Vilsack supports Iowa biofuel plant

WASHINGTON D.C — Agriculture Secretary Tom Vilsack announced last week the USDA has approved a conditional commitment for a $25 million guaranteed loan to build a biorefinery plant with funding support from USDA’s Biorefinery Assistance Pro-gram. The plant will be constructed by Fiberight, LLC based in Blairstown, Iowa.

“This project is another step the Obama administration is taking to support production of a new generation of renewable fuels, in order to build an active biofuels and biomass production industry in every region of the country,” Vilsack said. “Investments in renewable energy create jobs and reduce America’s dependence on foreign oil.”

USDA funding will be used to construct a 55,000-square foot facility that will produce cellulosic ethanol by converting municipal solid waste and other industrial pulps into biofuels, as well as using conventional renewable biofuel derived from seed corn waste.

When operational, the facility is expected to produce about 3.6 million gallons of cellulosic ethanol per year. The process will use a cellulosic microbe to produce up to 15 percent more ethanol than traditional fermentation technology, and reduce energy inputs in the fermentation and distillation process. Fiberight estimates the project will create 38 jobs and save 16 jobs.

Other funding comes from the State of Iowa.Fiberight also received a $2.5 million grant from the Iowa Power Fund in 2010. The company will work with the Benton County landfill to supply a portion of the feedstock for the project.

The total project cost is estimated at $59.5 million.