USDA's Repowering program awards $1.9 mil to help Iowa biorefinery switch to biomass power

USDA's Repowering program awards $1.9 mil to help Iowa biorefinery switch to biomass power

By Agri-Pulse Staff

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Washington, Sept. 9 - Agriculture Secretary Tom Vilsack picked an Iowa biorefinery producer Thursday to receive $1.9 million under a USDA program which supports using renewable biomass to replace fossil fuels for biorefinery process heat or power.

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“The award that USDA is announcing today marks a step toward reducing fossil fuel consumption.” Vilsack said. “The Repowering Assistance Program, along with the other renewable energy provisions of the 2008 Farm Bill, promote the creation of green jobs, combat climate change and provide economic opportunities to rural workers and rural businesses.”

Lincolnway Energy, LLC, based in Nevada, Iowa, has been selected to receive the $1.9 million payment award. The company produces 55 to 60 million gallons per year of fuel-grade ethanol. The USDA payment will reimburse the firm for costs to modify a boiler to burn wood and other biomass.

USDA's Repowering Assistance Program was authorized under the 2008 Farm Bill and allows USDA to make payments to eligible biorefineries to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of these eligible biorefineries. Biorefineries that were in existence when the Bill was enacted, June 18, 2008, are eligible to apply. For more information, visit www.rurdev.usda.gov/BCP_RepoweringAssistance.html.

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