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Understanding Washington’s Engagement with Advanced Biofuels

The Obama Administration came into office with a very public commitment to promote green energy, has it delivered on that promise?

The Obama Administration recognizes that advanced companies will deliver the innovative energy technologies that our nation is demanding. Our industry will be an active partner as the President transforms our energy policy through long-term, ‘greener’ solutions that will move America closer to energy independence each day.

The most significant thing the Administration has done for the biofuels industry was found in the American Recovery and Reinvestment Act, as it funded $800 million through various agencies and departments to spur the development of advanced biofuels.

The challenge now becomes: Given a tightly constrained credit market, can these companies meet the objectives of the grant and loan guarantee programs? The next step is altering the terms of engagement so that those funds actually do make a difference. Some other policy initiatives may be necessary, such as a government Green Bank, to fund the building of plants should the commercial sector choose not to participate.


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