WASHINGTON--(BUSINESS WIRE)--A newly introduced bill will authorize the Department of Defense (DOD) to continue its leading role in helping to commercialize next generation biofuels. The Biotechnology Industry Organization (BIO) today thanked Sens. Max Baucus (D-Mont.) and Jon Tester (D-Mont.) for introducing the American Security and Freedom Fuels Act of 2010, which would authorize the DOD to engage in long-term contracts for aviation biofuels.
Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “Advanced biofuel producers and algae producers are already working with the Navy, the Air Force and others to provide biofuels and diesel oils for testing in aviation and other applications. But efforts to commercialize advanced biofuels have been hampered during the recent recession by lack of access to institutional funding. Expanding the military’s ability to engage in long-term contracts could provide the certainty for leading companies and potential investors needed to commit capital to large-scale biofuel production.
“The Senate Energy Committee today is holding a hearing on why the Department of Energy’s Loan Guarantee Program has not helped companies scale up advanced biofuel production. As BIO has noted to the White House and the Committee, the DOE has been asking for long-term off-take agreements as an eligibility requirement for loan guarantees. Long-term Department of Defense contracts could meet that requirement, through the legislation introduced by Sens. Baucus and Tester. But BIO believes that the Renewable Fuel Standard’s market creation mechanism should also be viewed as satisfying this requirement.”
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIO produces BIOtech NOW, an online portal and monthly newsletter chronicling “innovations transforming our world.” Subscribe to BIOtech NOW.
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