facebook
twitter
rss
account
search
search
 

U.S. backs loan for Iowa bioethanol plant

Sept. 26, 2011 at 2:12 PM   |   Comments

WASHINGTON, Sept. 26 (UPI) -- Washington is supporting one of the nation's first commercial-scale cellulosic ethanol plants with $105 million in loan guarantees, the energy secretary said.

U.S. Energy Department Secretary Steven Chu announced the loan would help finance Project Liberty, a plant in Iowa that is expected to annually produce around 25 million gallons of ethanol.

"This project represents a pioneering effort to make broad scale deployment of cellulose ethanol a reality," Chu said in a statement.

"Producing the next generation of biofuels can not only reduce America's oil dependency, it can also create vast new economic opportunities for rural Americans."

The facility would produce enough biogas to power infrastructure associated with the Iowa plant. By 2013, the project would start using ethanol generated from corncobs, leaves and husks provided by area farmers.

The project is part of U.S. President Barack Obama's green-energy initiative. That program is under scrutiny from the president's Republican critics, who point to the bankruptcy of solar panel company Solyndra as a sign his policies are misguided.

Solyndra officials refused to testify last week before congressional leaders, pleading Fifth Amendment protections. Solyndra was the recipient of a $535 million federal loan.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
4
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
5
Brent losing steam, WTI showing gains Brent losing steam, WTI showing gains
Trending News
Around the Web
x
Feedback