Advanced Biofuels Would Receive Critical Support from Proposed Legislation, BIO Says

WASHINGTON--Proposed legislation would create or extend a diverse array of federal programs necessary to help advanced biofuel producers secure financing for construction of first-of-a-kind projects. The Biotechnology Industry Organization (BIO) today thanked Reps. Jay Inslee (D-Wash.) and Mike Castle (R-Del.) for introducing the Oil Independence for a Stronger America Act of 2010, which will help the United States achieve energy security goals and create jobs.

Rep. Inslee stated, "This legislation creates a path forward to achieve energy independence and invigorate American industries. The legislation will help redirect the billions that we send overseas to pay for our addiction to foreign oil and instead invest those dollars into homegrown biofuels and America's transportation sector."

Brent Erickson, executive vice president of BIO's Industrial & Environmental Section, stated, "The United States needs to produce large volumes of advanced biofuels to reduce reliance on foreign oil, enhance both our energy and national security, and jumpstart economic growth. More than 65 planned and operating projects in 30 states are looking to build an advanced biofuels and biobased products industry, which already has begun creating jobs and investment opportunities for industry, rural growers, and research institutions. But, even with the rapid pace of technology development and the demonstrated commitment of Congress and the Obama administration, federal policies to date have fallen short in helping the industry to secure needed capital investment in biorefineries and infrastructure.

"Federal policies can provide potential investors the certainty they need to make long-term investments in new cellulosic and algae-based advanced biofuel facilities. Enactment of an investment tax credit, similar to those given other nascent industries, can help second-generation advanced biofuel projects make the crucial step to commercializing innovative technologies. Increasing opportunities for algae feedstocks and drop-in molecules, such as biobutanol, by establishing parity in policy support is equally important."

A recent report by BIO, U.S. Economic Impact of Advanced Biofuels Production, projects that development of advanced biorefineries could create tens of thousands of jobs over the next few years and hundreds of thousands by 2030, contributing more than $140 billion in economic growth. The study also shows that advanced biofuel production could save a total of $350 billion in oil imports between now and 2022.

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