USDA Announces a Guaranteed Loan to a Biorefinery to Produce Renewable Energy
WASHINGTON, March 3, 2010 – The U.S. Department of Agriculture today announced that Range Fuels, Inc., a Colorado based firm with a planned biorefinery located near Soperton, Ga., is the recipient of a loan guaranteed by USDA Rural Development to make cellulosic biofuel from wood chips. The deal, recently finalized, was first announced last year and represents the first ever loan guarantee by USDA to a commercial-scale cellulosic biofuel plant. This project is expected to provide biorefinery jobs, construction jobs and support the timber industry.
"USDA's investment in the construction of Range Fuels' commercial facility, which will produce cellulosic biofuel from non-food biomass, such as wood chips, demonstrates the Obama Administration's goal to make the United States a leader in renewable energy production and furthers the President's ongoing efforts to bring jobs to rural communities," said Under Secretary for Rural Development Dallas Tonsager. "USDA is proud to work with the lender and the private sector to bring economic opportunity to rural areas."
The $80 million loan, being made by AgSouth Farm Credit to Range Fuels, Inc., is being guaranteed through USDA's Biorefinery Assistance Program authorized by the Food, Conservation, and Energy Act of 2008 and administered by USDA Rural Development. When fully operational, the plant is expected to produce an estimated 20 million gallons of cellulosic ethanol per year. USDA announced a conditional commitment to provide the loan guarantee for Range Fuels in January, 2009.
USDA's Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of advanced biofuels - defined as fuels derived from renewable biomass other than corn kernel starch. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project. The program is designed to create energy-related jobs and economic development in rural America. To learn more, please visit www.rurdev.usda.gov/rbs/busp/baplg9003.htm.
USDA Rural Development administers and manages more than 40 housing, business, and community infrastructure and facility programs through a network of 6,100 employees located in 500 national, state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $130 billion in loans and loan guarantees.
USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).