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Algae biofuels producers win lion’s share of funding as United States’ first commercial-scale cellulosic biofuels plant opens in Florida By BusinessGreen staff 05 Aug 2013 The US government has awarded grants of over $22m to companies using algae and other biomass to produce fuel in the latest show of support for the nascent advanced biofuels sector. Hawaii Bioenergy, San Diego-based Sapphire Energy, and New Mexico State University will each receive $5m in Department of Energy funding to advance the development of algae-based fuels as a direct replacement for conventional fuels, while California Polytechnic State University was awarded $1.5m to cultivate more productive algae strains. In addition, FDC Enterprises was given $6m to improve processes for collecting and distributing wood, grass and agricultural waste that can be converted into fuel. [font=arial,helvetica,sans-serif] Announcing the funding last week, Energy Secretary Ernest Moniz said: “By partnering with industry and universities, we can help make clean, renewable biofuels cost-competitive with gasoline, give drivers more options at the pump and cut harmful carbon pollution.” [font=arial,helvetica,sans-serif] Currently, the US transportation sector accounts for two-thirds of the country’s total oil consumption and one-third of its greenhouse gas emissions. [font=arial,helvetica,sans-serif] The Obama administration has sought to bring forward the production of next generation fuels to insulate the country from oil price shocks and reduce its dependence on imports. It aims to produce cost-competitive drop-in biofuels by 2017 and algae biofuels by 2022. [font=arial,helvetica,sans-serif] As well as funding advanced biofuels producers, the US military has also jointly invested in plants to ensure there is sufficient supply of sustainable biofuels. [font=arial,helvetica,sans-serif] Cellulosic biofuels made from non-food feedstocks, waste materials and algae can directly replace petroleum fuels in vehicles and refineries and in theory do not pose the same challenges as first generation fuels made from crops such as wheat or corn. Campaigners have claimed industrial-scale production of biofuels can hinder food production, drive deforestation, and produce more emissions over their life cycle than fossil fuels. [font=arial,helvetica,sans-serif] However, advanced biofuels production still remains at relatively low levels, despite long-standing targets in the US, and the country’s first commercial-scale cellulosic ethanol plant only came online last week. [font=arial,helvetica,sans-serif] INEOS Bio’s Indian River BioEnergy Center in Vero Beach, Florida, a joint venture between INEOS Bio and New Planet Energy, is expected to convert wood scraps, grass clippings and other waste materials into eight million gallons (30.3 million litres) of transportation fuel a year, as well as 6MW of energy for heat and power. Continue reading →