Funding the existing cellulosic biofuel reverse auction program is a targeted way to assist cellulosic biofuel producers in the US.
The Department of Energy’s Section 942 program supports the production of cellulosic biofuels by providing payments on a per gallon basis through a reverse auction process. Numerous federal and state governmental entities use reverse auctions to utilize taxpayer funds in as efficient a manner as possible.
Advanced biofuels are a key to creating new jobs and revitalizing the US economy, according to a recent report commissioned by BIO, US Economic Impact of Advanced Biofuels Production.
Brent Erickson, executive vice president of industrial and environmental section at BIO, said: ”The reverse auction program rewards pioneering cellulosic biofuel producers who can provide the most cost effective product.
“This program, if closely coordinated with other federal programs, can stimulate the private investment needed to build large-scale biorefineries to meet the energy production and greenhouse gas reduction goals of the US.
”Development of the advanced biofuels industry could produce hundreds of thousands of new green jobs and contributing more than $140bn in economic growth by 2030. Rapidly increasing US production of advanced biofuels is also a sound way to reduce US reliance on imported petroleum and carbon emissions associated with climate change.”
