Biorefinery US Department of Agriculture Clears the Way for Biorefinery Projects
A loan guarantee from the US Department of Agriculture clears the way for a new fulls scale biorefinery. The new baseoil production from renewable sources is one of the very first chemical products to receive support from the USDA program.
Irvine, California/USA – Biosynthetic Technologies, developer of biobased oils used in automotive and industrial lubricants, has received approval from the U.S. Department of Agriculture (“USDA”) on its application for a loan guarantee under the USDA’s Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. In advancing Biosynthetic Technologies’ application into Phase Two, the USDA has reserved funds that will be used to guarantee 80 percent of a loan to be issued by the bank to Biosynthetic Technologies to build a commercial-scale manufacturing plant.
Congress established the Biorefinery Assistance Program in 2008, and in the 2014 Farm Bill extended and expanded it to include renewable chemicals and biobased product manufacturing. The program provides guarantees for loans made by commercial lenders to fund the development of biorefineries for the production of advanced biofuels and renewable chemicals as well as biobased product manufacturing facilities.
Biorefinery to Produce 67.000 Tons of Biobased Oil per Year
“The fact that Biosynthetic Technologies’ project was advanced to Phase Two by the USDA in this funding round is a great vote of confidence and point of validation. We are pleased that the 9003 Program was expanded recently to include renewable chemical projects, and honored to be the only chemical project selected under this program to date,” said Allen Barbieri, CEO.
The project financing will be used to construct a full-scale commercial manufacturing facility that will be co-located within a major existing chemical complex. The plant will produce 20 million gallons (67,000 MTs) of Biosynthetic Base Oil per year, representing less than two tenths of one percent of the global lubricant base oil market, giving Biosynthetic Technologies tremendous expansion potential.