USDA Approves First Ever Guaranteed Loan for Commercial-Scale Cellulose Ethanol Plant

Agriculture Secretary Ed Schafer announced last week that USDA Rural Development has approved the first ever loan guarantee to a commercial-scale cellulosic ethanol plant. The $80 million loan to Range Fuels Inc., Soperton, Ga., comes from the Section 9003 Biorefinery Assistance Program authorized by the 2008 Farm Bill.

"The investment in this facility - which will make cellulosic ethanol from wood chips - has the potential to significantly advance the timetable for second generation ethanol production in this country," Schafer said. "I visited the pilot plant last October and was excited to see how well the technology works. The funding announced today helps the Bush administration fulfill its commitment to reduce America's dependence on foreign oil by developing alternative, renewable energy sources. USDA is proud to work with the private sector to lead this important breakthrough in renewable energy production."

The Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of advanced biofuels - defined as fuels that are not produced from food sources. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project. The program is designed to create energy-related jobs and economic development in rural America. The loan to Range Fuels is approved subject to conditions.

The project is expected to produce an estimated 63 jobs. When fully operational in 2010, the plant is expected to produce approximately 20 million gallons of cellulosic ethanol per year.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development has invested more than $111 billion since 2001 for equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. More than 2 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development's web site at http://www.rurdev.usda.gov.

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Siemens and USDA/ARS Partner in Pilot to Convert Second Generation Biofuel Feedstocks to Fuels and Chemicals

PRNewswire-FirstCall/ -- Siemens Energy & Automation, Inc. and the United States Department of Agriculture's (USDA) Agricultural Research Service (ARS) have entered into a Cooperative Research and Development Agreement (CRADA) that will improve the processes used to convert second generation, non-food-based, biofuel feedstocks, including perennial grasses, animal wastes and agricultural residues such as corn stover, into liquid bio-fuel intermediates, such as bio-oil.

As part of the CRADA, Logical Innovations of Richmond, Va., will work with researchers at USDA/ARS's Eastern Regional Research Center (ERRC) in Wyndmoor, Pa., to improve on pyrolysis oil production via innovative control technologies. They will install a distributed control system (DCS) based on Siemens SIMATIC(R) PCS 7 Box technology on ERRC's bench scale, fluidized bed pyrolysis system that heats the biomass in a reactor and converts it to liquid bio-oil, bio-char, and synthetic gas. The project will be commissioned in late 2008.

"We think distributed control will help accelerate second generation biofuels and biochemicals development by improving the repeatability, consistency and efficiency of our research processes," said USDA/ARS Research Leader Dr. Kevin Hicks.

According to Dave Hankins, vice president of Siemens Chemical and Pharmaceutical Center of Competence, the PCS 7 Box technology provides a new level of flexibility to biofuels producers, as well as improves worker safety and equipment protection.

"Siemens is proud to partner with the USDA in this important, environmentally friendly, pilot program," Hankins said. "This investment in the future of second generation feedstocks is another example of Siemens commitment to alternative fuel development and production. New feedstocks that can be quickly and easily processed will benefit the nation and the biochemicals and biofuels industries."

About Siemens:

Siemens Energy & Automation, Inc. is one of Siemens' operating companies in the U.S. Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens Energy & Automation, Inc. manufactures and markets one of the world's broadest ranges of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems. For more information: www.sea.siemens.com.

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