Four Nebraska Companies Receive USDA Bio-Fuel Funding - KHGI-TV/KWNB-TV/KHGI-CD-Grand Island, Kearney, Hastings

Four Nebraska Companies Receive USDA Bio-Fuel Funding

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Washington- Agriculture Under Secretary for Rural Development Dallas Tonsager has announced payments to 189 companies to support the production and expansion of advanced biofuels. Four are from Nebraska.

Ag Processing, Inc. headquartered in Omaha, Nebraska will receive $942,335 in payments for biodiesel production from soybean, canola and waste vegetable oils at their St. Joseph, Missouri, Sargeant Bluffs, Iowa, and Algona, Iowa production facilities.

Chief Ethanol Fuel, Inc. will receive $10,110 in payments for ethanol production from sorghum at its plant located in Hastings, Nebraska.

Cornhusker Energy Lexington, LLC will receive $12,105 in payments for ethanol production from sorghum at its plant located in Lexington, Nebraska.

Finally, KAAPA Ethanol, LLC will receive $658 in payments for ethanol production from sorghum at its plant located in Minden, Nebraska.

"These payments support the nation's expanding alternative fuels industry by encouraging the use of renewable feedstocks and helping to create a stronger energy future," Tonsager said. "Advanced biofuels production is a key component of the President's 'all-of-the-above' energy strategy, which is designed to reduce America's reliance on foreign oil."

The payments total more than $15.7 million.

The funding is being provided through USDA Rural Development's Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of biofuels produced from renewable biomass from a wide variety of non-food sources, including waste products.

Examples of eligible feedstocks include crop residue; animal, food and yard waste material; and vegetable oil.

Through this program and others, USDA is working to support the research, investment and infrastructure necessary to build a strong biofuels industry that brings enhanced economic opportunity to rural areas.

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