14 DAY TRIAL // News from the United States says that the Energy Commission in the state of California has agreed to invest in promoting the use of renewables.
More precisely, the California Energy Commission has announced the availability of roughly $24 million (€17.7 million) in grant funds for new biofuels projects.
As detailed by Green Car Congress, this money will serve either to develop new biofuel production facilities across the state, or to modify existing ones.
The same source tells us that the projects that are targeted by this green-oriented initiative are those revolving around the following biofuels: diesel substitutes, gasoline substitutes, and biomethane.
For each of these three categories of biofuels projects, the California Energy Commision has decided to allocate $9 million (€6.64 million), $9 million (€6.64 million), and $6 million (€4.43 million), respectively.
In order for new biofuels projects to be eligible to receive grant funds made available under this initiative, they must be in either of the two stages of development: pilot and demonstration facilities or commercial facilities.
Projects in the first stage must have a minimum production of 50,000 gallons per year and must prove a technology or process in the field, develop a first pilot or demonstration facility at a given location, develop a product, and create markets for the technology.
Projects in the second stage are required to have a minimum output of 1 million gallon per year for liquid fuels, or 400,000 gallons per year for biomethane. Besides, this stage refers to production facilities that can be expanded for revenue generation.
In order to qualify for these funds, the projects must also translate into the production of a biofuel whose calculated carbon intensity is below the California Air Resources Board Low Carbon Fuel Standard.
Lastly, those who apply are expected to come forward with a minimum 50% match share of the overall allowable project costs.