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Farm Bill Helps Advance U.S. Biofuels Production
2008-05-16
IRVINE, Calif. BlueFire Ethanol Fuels, Inc. a leader in cellulosic ethanol production technology, has commended the United States Congress on the passing of the farm bill yesterday. By passing the bill by an overwhelming margin, Congress has ruled out President Bush's threatened veto.

The farm bill is expected to help pave the way for companies like BlueFire Ethanol that are working to increase U.S. biofuels production through its patented, commercially viable and profitable system that transforms cellulosic waste into ethanol.

"The farm bill provides a much needed $1.01 per gallon tax credit for the cellulosic biofuel industry," said Arnold Klann, president and CEO of BlueFire. "Congress's continued support for the development of clean energy technologies is a key step towards full-scale commercial production of cellulosic ethanol and making America energy-independent."

BlueFire Ethanol is one of six ethanol companies awarded funding from the U.S. Department of Energy for its planned ethanol production facility using cellulosic wastes diverted from landfills in Southern California. The facility will produce approximately 17 million gallons of cellulosic ethanol per year from green waste, wood waste and other cellulosic urban wastes.

In addition, BlueFire is also in the process of obtaining all necessary permits to commence construction of a smaller facility near Lancaster, California. The Lancaster plant will produce 3.1 million gallons of cellulosic ethanol per year from the cellulosic fraction of post-sorted municipal solid waste. By locating biorefineries directly in the markets with the highest demand for ethanol, BlueFire Ethanol's technology can also help cities manage landfill waste -- solving two problems for the price of one.

BlueFire's facilities will use its commercially-ready, patented and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic waste ("Green Waste") into cellulosic ethanol. Derived from non-foodstock urban, forestry and agricultural residues, this form of ethanol is a completely renewable and highly-economical alternative to gasoline and other types of ethanol.

"While our waste-to-ethanol process doesn't need the tax credit to be commercially viable, the farm bill does help to mitigate the financial markets' perceived risks in deploying a first-of-its-kind technology," added Klann. "The tax credit in the farm bill is a key incentive for integrated oil and other financial partners to get involved at the project level of these cellulosic biorefineries."
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