ANNOUNCEMENT 01 Sep 2014

In September 2014, the government of the United States of America announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Sep 2014 | Removal date: open ended
Still in force

Loan guarantee

Supported by Senator Harry Reid (Democrat-Nevada), the majority leader in the U.S. Senate, two government agencies are providing assistance to Fulcrum BioEnergy for a Sierra BioFuels Plant that will be located in Storey County, Nevada. As announced on September 19, 2014, the support includes a $70 million grant from the Department of Defense's Advanced Drop-in Biofuels Production Project, as well as a $105 million loan guarantee from the Department of Agriculture. The project will convert household garbage into jet and diesel fuels. The project stems from a policy adopted in 2011 by which the departments of defense, agriculture, and energy create partnerships with the private sector to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation. The plant will produce more than 10 million gallons per year of advanced biofuels while diverting over 200,000 tons of garbage from landfills, according to Senator Reid, and will create over 500 engineering, construction, and operation jobs. The fuel produced by Sierra BioFuels will be sold at market prices. The product in question is potentially tradeable.

AFFECTED SECTORS