More U.S. backing seen possible for ethanol plants

WASHINGTON (Reuters) – Congress may add $1 billion to a U.S. loan guarantee program for construction of cellulosic ethanol plants, the president of a renewable fuels trade group trade said on Tuesday.

During a teleconference, Renewable Fuels Association President and CEO Bob Dinneen said lawmakers apparently were looking at $1 billion for loan guarantees to bring new feedstocks into use.

A $320 million guarantee program was created in the 2008 farm law for biorefineries producing advanced fuels such as ethanol from cellulose found in wood and grass.

Agriculture Secretary Ed Schafer says the first guarantee may be issued soon.

Reuters UK