Biofuel, Biorefinery, Government, Investments

Minnesota bill for renewable chems incentives

The blog just saw this article from Biomass magazine about a pending Minnesota bill aiming to create incentives for commercial production of renewable chemicals, advanced biofuels and biomass.

The bill H.F. 2456, introduced on February 27 in the Minnesota House of Representatives, aims to create a capital equipment loan program for renewable chemical and advanced biofuel; incentive program to create and establish production for both industries as well as for biomass production; and appropriate money for these programs.

Under this bill, renewable chemical facilities must produce at least 30m lb/year to be eligible for the program; advanced biofuel facilities must produce at least 950,000 mmbtu/year; and biomass thermal energy projects must produce at least 7,500 mmbtu/year.

Specifically for renewable chemical production incentive, qualifying facility eligible for payment must source at least 80% raw materials from Minnesota, and must be from agricultural or forestry sources or from organic content of municipal solid waste. The production facility must be located in Minnesota and must not begin operation before January 1, 2015. Eligible companies include existing firms that are adding additional production capacity as well as new companies and facilities.

Payments for each producer’s annual production will be made for qualifying facility by June 30, 2020, with an amount of 3 cents/lb of sugar-derived renewable chemical; 3 cents/lb of cellulosic sugar; and 6 cents/lb of cellulosic-derived renewable chemical produced at a specific location for 10 years after the start of production.

The incentive is subject to certain feedstock requirements, and with a cap of $30 million as well as production not exceeding 100m lbs/year. If an eligible renewable chemical producer becomes ineligible within five years, payments received must be refunded.

A companion bill, S.F. 2101, was also introduced in the Minnesota state.

About Doris de Guzman

Will Green Chemistry save the world or is it hype?

Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives aimed at preventing pollution; replacing ingredients; and using renewable feedstocks in Green Chemistry.

She has been covering the oleochemicals market for 15 years and spread her beat to inorganics, biofuels and green chemistry.


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