Advanced Biofuels Can Contribute to Energy, National Security Under New Legislation
WASHINGTON, DC (June 30, 2011) – The "Oil Independence for a Stronger America Act," introduced yesterday, can help advanced biofuel producers secure financing for construction of projects. The Biotechnology Industry Organization (BIO) today thanked Sens. Jeff Merkley (D-Ore.), Tom Carper (D-Del.) and Michael Bennet (D-Colo.) for introducing legislation that would make algae and other second-generation biofuels eligible for the cellulosic biofuels production tax credit and create an optional investment tax credit.
"Advanced biofuel producers seeking the investment needed to build biorefineries and infrastructure are finding it especially challenging to raise financing for first-of-a-kind commercial-scale facilities. Private capital has been on the sidelines since the recession, due in part to ongoing uncertainty about energy prices and their impact on economic growth. Enduring federal commitment to increasing alternative energy production should provide potential investors the certainty they need to make long-term investments in new cellulosic and algae-based advanced biofuel facilities. Enactment of a technology-neutral 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. Eligibility for new technologies, such as algae, will help the industry make a measurable impact on the nation's energy security. And extension of the accelerated depreciation for cellulosic property and the biodiesel, renewable diesel and alternative alcohols tax credits will provide the stable policy environment that investors are seeking," said Brent Erickson, executive vice president of BIO's Industrial & Environmental Section.