Loan to provide crude green crude oil

11/8/2011

A USDA loan was issued this week by agriculture secretary Tom Vilksack via the agency's Biorefinery Assistance Program.

Sapphire Energy obtained a $54.5 million loan to assist in the construction and operation of a $135 million integrated algal biorefinery (IABR) in Columbus, New Mexico. The IABR will produce advanced biofuel as a "drop-in replacement" for petroleum-derived diesel and jet fuel.

According to Vilsack, this "green crude" algae-based oil can eventually be refined into environment-friendly transportation fuel.

"The Obama Administration is committed to providing support for renewable energy production which will safeguard national security and create jobs in rural America," said Vilsack. "This project represents another step in the effort to assist the nation's advanced biofuel industry produce energy in commercial quantities from sustainable rural resources."

Upon completion, the IABR will be able to produce at least 100 barrels of refined oil per day - the equivalent to 1 million gallons per year. By doing so, the project reduces American dependence on foreign oil, increases energy security and is expected to create around 60 jobs in the Columbus area.

The Green Fire Times notes that America currently holds just 2 percent of proven oil resources but consumes about 25 percent of the world’s supply. This places the country at the mercy of external risks and instability.