WASHINGTON – To boost demand for ethanol, the U.S. Department of Agriculture (USDA) will help deploy 10,000 blending pumps at convenience stores and gas stations around the country, Agriculture Secretary Tom Vilsack said last week in a speech at the National Press Club. Each of those pumps cost $25,000, which would put the total cost of the expansion at $250 million, reported Bloomberg.
"Over time, a key missing link in the effort to meet the [Renewable Fuels Standard] goal has been and will continue to be the lack of convenient locations to obtain higher blends of biofuels. Convenient store operators and marketers remain reluctant to incur the cost of new pumps and tanks. USDA and other federal departments can and should offer help," he said. "I have instructed Rural Development officials to provide financial assistance, using existing RD programs and resources, to provide matching funds to help install 10,000 blender pumps and storage systems over the next five years. Work will commence immediately on putting that program together."
Also, the U.S. will pay farmers to produce nonfood crops that can be converted to fuels to reduce reliance on imported oil and boost rural economies, said Vilsack. The department will resume payments to farmers under the 2008 Biomass Crop Assistance Program for eligible perennial crops. The effort is part of a plan to boost annual production of biofuels, including corn-based and cellulosic ethanol, to 36 billion gallons required by the Renewable Fuels Standard, the report said.
U.S. drivers will use about 138 billion gallons of gasoline this year, and ethanol facilities are expected to produce 12.8 billion gallons of the additive, according to the Renewable Fuels Association.
To read the rest of the story, click here.