USDA invests $26 million in biofuel infrastructure

The U.S. Department of Agriculture (USDA) has announced it is investing $26 million to build infrastructure to expand the...

The U.S. Department of Agriculture (USDA) has announced it is investing $26 million to build infrastructure to expand the availability of higher-blend renewable biofuels by 822 million gallons annually across 23 states.

The investment, made on the one year anniversary of the Higher Blends Infrastructure Incentive Program (HBIIP), which the award falls under, aims to “increase the use of biofuels derived from U.S. agricultural products and prioritize climate-smart solutions”.

Biofuels are an important market for U.S. feedstock producers and are cited as contributing to energy security as well as supporting rural economic development.

Thus far, the USDA has already investmented $66.4 million USD to-date to increase biofuel sales by 1.2 billion gallons annually.

Examples of how the investment will help each state can be found here.

 

What to read next
The biofuels market is transitioning from rapid growth to a focus on margin optimization, carbon intensity differentiation, and regulatory compliance, driven by low-carbon policies in the US and EU that are reshaping feedstock demand, trade flows, and pricing dynamics.
The publication of Fastmarkets’ AG-PLM-0019 Refined bleached deodorised (RBD) palm olein assessment for March 16 was delayed due to a reporter error. Fastmarkets’ pricing database has been updated.
Soybean oil prices rose to 67.3 cents, driven by Middle East disruptions and strong biofuel margins. Fastmarkets predicts continued price strength amid geopolitical risks.
US animal fats and oils markets have moved higher in recent weeks alongside gains in soybean oil futures and diesel values, with improving renewable diesel and biodiesel economics driving stronger demand for feedstocks.
The war between Israel, the United States and Iran is already affecting the flow of agricultural commodities from South America to Iran, particularly feed, with some soymeal cargoes said to have been washed out, market sources told Fastmarkets in the week to Thursday March 5.
The prices that will be affected are AG-SAF-0006 sustainable aviation fuel (SAF max), base cost, exw Netherlands (incl. HBE-IXB credits), $ per tonne, and AG-SAF-0007 sustainable aviation fuel (HVO max), base cost, exw Netherlands (incl. HBE-IXB credits), $ per tonne. Following the update by the Netherlands to its current biofuel mandate ahead of its full implementation of […]