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BIO calls for more investment for biorefineries

The body representing biofuels in the US is calling for the cellulosic biofuel tax credits to be extended so that companies can raise the funds they need to build biorefineries.

The Biotechnology Industry Organization (BIO) says the industry is at a turning point where it is rapidly growing because biotechnology companies have had private investment to help commercialise the technology.

‘The cellulosic biofuels production tax credit and the accelerated depreciation for cellulosic biofuel property have the potential to unlock this vital project financing. Algae biofuels also need to be eligible for these credits. But the 31 December 2012 expiration date for these credits prevents project developers from leveraging their full value,’ says Brent Erickson, executive VP of BIO’s industrial and environmental section.

However, the organisation thanked senators who have helped to recognise the importance of supportive and stable federal policy which will enable biofuels to build commercial developments.

‘We ask that any tax package that considers effectively expired provisions extend the cellulosic biofuels production tax credit and accelerated depreciation for cellulosic biofuel property, and include eligibility of algae-based biofuels,’ Erickson adds.

In addition to extending the tax credits for cellulosic biofuels, BIO supports extension of the Qualifying Therapeutic Discovery Project credit and the Research and Experimentation credit.