The U.S. Department of Agriculture will make payments to more than 160 energy producers in 41 states to support the production and expansion of advanced biofuels such as biodiesel.


The payments are authorized under the Bioenergy Program for Advanced Biofuels, part of the 2008 Farm Bill, and are made to eligible producers to support and ensure an expanding production of advanced biofuels. Payments are based on the amount of biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat.

For example, Ever Cat Fuels has been selected to receive a $98,507 contract payment to help offset the costs of producing almost 881,000 gallons of biodiesel at its plant in Isanti, Minn. Ever Cat uses the Mcgyan process to produce biodiesel, which converts feedstock plant oils and animal fats to biodiesel. Ever Cat produces 3 million gallons of biodiesel a year and is the first commercial plant designed to use the Mcgyan technology. The plant began operations two years ago.

The National Biodiesel Board applauded the decision.

"These payments will create jobs and economic activity while helping the biodiesel industry advance new technologies and improve efficiency," said Anne Steckel, NBB's vice president of federal affairs.