Renewable Fuels Association Concerned about Flaws in DOE Loan Program
Dear Secretary Chu:
The Renewable Fuels Association (RFA), the national trade association representing the U.S. ethanol industry, is writing to express our concern about the current operation and direction of the U.S. Department of Energy’s (DOE) loan guarantee program. As an advocate for ethanol from all feedstocks and technologies, the RFA is greatly troubled that so few cellulosic ethanol biorefineries are qualifying for DOE loan guarantees, and believe there are systemic issues with DOE’s evaluation of these emerging technologies that must be addressed immediately if we are to meet the targets for advanced biofuels production and use established by the Energy Independence and Security Act of 2007.
The technology exists today to process ethanol from cellulose and other biomass feedstocks and dedicated energy crops; however, the commercialization of next generation biofuels has been crippled by access to capital issues exacerbated by the global banking and economic crisis. That is why the DOE’s loan guarantee program is so important, and must be redirected to reflect the intent of Congress that this program encourage emerging technologies by reducing market risk.
A fundamental flaw of the loan guarantee program is that DOE is weighing the applications of emerging technology projects such as cellulosic ethanol using the same criteria as mature technology projects, and against more mature technologies, such as wind and solar, that have been commercialized in other countries. READ MORE
Related posts:
- Obama Administration Announces Billions in Lending Authority for Renewable Energy Projects and to Modernize the Grid
- New Low Carbon Synthetic Fuels Association (LCSFA) Forms; Urges EPA to Promote the Cleanest Renewable Fuels Compatible with Existing Fuels Infrastructure
- Renewable Fuels Association Team, Other Stakeholders Unable to Verify EPA ILUC Analysis Results
- The BB Gun – the DOE’s “BB” Rating Requirement Blasts Diversity in Clean Energy Development
- DOE Provides Loan Guarantee Application Tips
