A Florida plant that would produce biofuels from yard trash and citrus rinds has received a $75 million loan guarantee from the U.S. government.
INEOS New Plant Energy LLC plans to produce 8 million gallons a year of advanced biofuel at the plant in Vero Beach on Florida's Atlantic coast. It was among four projects tentatively identified early this year for construction support.
In a statement, the Agriculture Department on Thursday said it issued a $75 million guarantee to INEOS from a fund that aids construction of commercial-scale biomass plants.
Although Congress set high goals for second-generation biofuels, slow economic growth has delayed development of the industry and kept production at a trickle.
This year the Environmental Protection Agency lowered the U.S. mandate for cellulosic ethanol for the second year running.
Completion of the INEOS plant is expected in summer 2012. It would consume 300 dry tons per day of citrus fruit, vegetable and yard waste in a gas fermentation process to produce ethanol and enough electricity to run the plant and 1,400 homes.
The other companies offered loan guarantees in January were Coskata Inc, Green Diamond Diesel LLC and Enerkem Corp.
