The USDA Rural Development has approved the first ever loan guarantee to a commercial-scale cellulosic ethanol plant. The $80 million loan to Range Fuels Inc., Soperton, Ga., comes from the Section 9003 Biorefinery Assistance Program authorized by the 2008 Farm Bill.
The Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of advanced biofuels – defined as fuels that are not produced from food sources. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project. The program is designed to create energy-related jobs and economic development in rural America. The loan to Range Fuels is approved subject to conditions.
The project is expected to produce an estimated 63 jobs. When fully operational in 2010, the plant is expected to produce approximately 20 million gallons of cellulosic ethanol per year.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development has invested more than $111 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than
2 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site.