BIO Calls for Federal Loan Guarantees for Development of Biorefineries
WASHINGTON, Dec. 8 /PRNewswire/ -- The Biotechnology Industry Organization
(BIO) praises the findings of a groundbreaking new report, Growing Energy: How
Biofuels Can Help End America's Oil Dependence, released today. The report was
prepared for the National Commission on Energy Policy (NCEP) by the Role of
Biomass in America's Energy Future (RBAEF) project. It asserts that the
United States "can replace much of our oil with biofuels -- fuels made from
plant materials grown by American farmers. These fuels, especially those
known as cellulosic biofuels, can be cost-competitive with gasoline and
diesel." BIO supports the findings of the report and echoes its call for
federal investment in construction of biorefineries to convert cellulosic crop
residues to ethanol transportation fuel.
The Growing Energy report makes clear that using biotechnology to convert
cellulose-containing biomass to ethanol motor fuel can reduce U.S. dependence
on imported energy. New biofuels could be produced from agricultural waste
products at a cost equivalent to the current costs of gasoline and diesel,
while at the same time generating economic benefits for farmers and rural
communities. Brent Erickson, BIO's vice president for the Industrial and
Environmental Section, states, "The path to a sustainable and secure energy
future based on corn stover, wheat straw and other crop residues requires
innovation. The biotech industry has provided a way to make ethanol from crop
waste. Now we need new federal policies that do not focus solely on research
and development but actually help get new biorefineries constructed and
operating, and that will take a significant new loan guarantee program."
The report outlines a plan for government investment of $1.1 billion for
research, development and construction of demonstration projects in addition
to approximately $800 million for development of biofuel processing plants
between 2006 and 2015. BIO has urged federal agencies to include in the
federal budget loan guarantees and grants for the construction of
biorefineries and facilities to make chemicals from renewable agricultural
resources. According to Erickson, "It takes seven to ten years to build the
infrastructure to produce biofuels on a large scale. Federal loan guarantees
are needed now if we are to start building biorefineries and producing fuel
for American motorists. Federal loan guarantees are the best way to help
build biorefineries without increasing the federal deficit."
BIO represents more than 1,000 biotechnology companies, academic
institutions, state biotechnology centers and related organizations in all 50
U.S. states and 33 other nations. BIO members are involved in the research
and development of health-care, agricultural, industrial and environmental
biotechnology products.
SOURCE Biotechnology Industry Organization
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Related links:
http://www.bio.org
CONTACT:
Paul Winters of the Biotechnology Industry
Organization, +1-202-962-9237
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