The Obama administration has announced a major initiative to expand biofuel production, pumping much needed capital into the sector.
A coordinated program between the U.S. Departments of Agriculture, Energy and Navy will invest up to US$510 million over the next three years to support biofuels for U.S. commercial and military transportation.
“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” said President Obama. Fuel supplies are intended for use in air and marine transportation, and will be blended with existing fuels.
“But supporting biofuels cannot be the role of government alone. That’s why we’re partnering with the private sector to speed development of next-generation biofuels that will help us continue to take steps towards energy independence and strengthen communities across our country,” Obama added.
The cost sharing requirements are that companies match government funding dollar for dollar. The question is whether the investment will be enough of a catalyst to actually drive biofuel development much further beyond where it stands today.