USDA to Invest $1.6 Billion in Renewable Fuels
Yesterday, Agriculture Secretary Mike Johanns announced plans to propose $1.6 billion in new funding for renewable energy, with a focus on cellulosic energy research and production, as part of the Administration’s 2007 farm bill proposals.
This funding will support President Bush’s goal of reducing gasoline usage by 20 percent in the next ten years and will compliment an array of renewable energy-related efforts underway at the USDA.
USDA spent nearly $1.7 billion on energy-related programs between 2001 and 2005, and last year alone, USDA spent over $270 million on these programs in areas such as commercialization, research, infrastructure development, and technical support. Currently, there are 110 operational ethanol plants in 19 states with another 73 under construction and new proposals at an astounding rate.
USDA’s Agriculture Research Service (ARS) scientists have developed improved fermentation organisms and are making other significant steps toward achieving the technology needed for commercial production of cellulosic ethanol. ARS scientists have genetically modified a strain of lactic acid bacteria that produces increased levels of ethanol from cellulosic biomass. The research findings demonstrate that metabolic engineering has the potential to create new biocatalysts to convert biomass to biofuels.
Johanns plans to provide additional information about the proposal to provide $1.6 billion in new funding for renewable energy within the next few weeks when he unveils the Administration’s full package of 2007 farm bill proposals.