The Department of Agriculture (USDA) has given $22 million in grants to increase US ethanol and biodiesel sales, said US Secretary of Agriculture Sonny Perdue.

He said the grants have come out of the Higher Blends Infrastructure Incentive Programme (HBIIP) which is a $100 million fund, available to vehicle fuelling facilities, including local fuelling stations and convenience stores, fleet facilities, fuel terminal operations, midstream partners and distribution facilities.

The initial grants have been made to projects in California, Florida, Iowa, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New York, Ohio, Utah and Wisconsin, and are expected to increase annual ethanol demand by 150 million gallons (568 million L). The remaining investments will be announced in the coming weeks.

Higher blends are defined as fuels containing more than 10 percent ethanol or 5 percent biodiesel by volume. The funding is intended to share the costs related to the installation of fuel pumps, related equipment and infrastructure to help such facilities to convert to higher ethanol and biodiesel blends.

Perdue said: “Investments made through the Higher Blends Infrastructure Incentive Programme are helping rural communities build stronger economies and will give consumers more choices when they fill up at the pump. President Trump has expanded ethanol use by unleashing year-round E15, and the result is more demand for American farmers and more affordable fuel for American consumers.”

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16th October 2020