Louisiana Advanced Biofuel Industry Development Initiative becomes law; will support fuels produced from La. crops with higher than 600 gpa yields

In Louisiana, state governor Bobby Jindal signed the Advanced Biofuel Industry Development Initiative, that will provide support for the development of ethanol from Louisiana crops that yield a minimum of 600 gallons of fuel per acre. The legislation includes a pilot programs for hydrous ethanol pilot program: the United States has traditionally manufactured anhydrous ethanol, while Brazil has manufactured hydrous.

Louisiana background

• The state Bond Commission approved a $100 million bond issue in support of the Dynamic Fuels project, a partnership between Tyson Foods and Syntroleum to produce synthetic diesel fuel from meat fats, corn oil and other substances into “synthetic diesel” fuel. The 75 Mgy project will commence operation in January 2010. Funding for the project comes from the Gulf Opportunity Zone tax-free, low interest bonds earmarked for economic development in areas affected by the 2005 hurricanes.

• The Colombian-controlled form Inverandino plans to commence ethanol production at a 22 Mgy plant in Lacassine, in partnership with Louisiana Green Fuels, using feedstock from three sugar plants in Southern Louisiana acquired by Inverandino in the past two years. It will be the first sugar cane ethanol plant in the US.

• Last month, Imperial Sugar said that it is investigating a 60-100 Mgy sugarcane ethanol plant that would be located next to its Gramercy sugar refinery. The company is currently investigating financial incentives as well as seeking an ethanol partner. The proposed plant would be operational in 2011.

• Verenium said that it was in the process of commissioning its 1.4 Mgy demonstration-scale cellulosic ethanol plant in Jennings.

• PetroSun announced a letter of intent to supply 54 million gallons of algal oil to a new 54 Mgy Bio-Alternatives biodiesel plant in south Louisiana.

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