Biorefinery industry presses Obama for financing help

Congress created DoE’s loan guarantee program in 2005 to help a broad range of energy and manufacturing technology, and last year’s economic stimulus bill included $500 million for biofuels projects to be doled out as part of DoE’s program.

But the three biorefinery groups argue that the loan guarantee program as currently administered “essentially forecloses eligibility” of advanced biofuels and biorefinery projects.

The groups echo solar, wind and other renewable energy trade associations in pushing Obama to have Congress restore $3.5 billion in diverted funds back to DoE’s loan guarantee program. They also want a dedicated pool of money set aside for biorefineries.

“The program is at a critical juncture,” they write. “If appropriate reforms are imposed, the first pioneer biorefineries will be built, paving the way for a material shift toward sustainable low-carbon transportation fuels, chemicals and products. Without such changes, our global lead in these vital market segments could quickly falter.”