September 25, 2020
BY Erin Krueger
The USDA is soliciting applications for two different cycles of the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program. The first cycle closes Oct. 1, while the second is open through April 1, 2021.
The program aims to assist in the development of new and emerging technologies for the development of advanced biofuels, renewable chemicals or biobased products manufacturing. To do this, the program provides loan guarantees to help fund the development, construction, and retrofitting of commercial-scale biorefineries using eligible technology and of biobased product manufacturing facilities that use technologically new commercial-scale processing and manufacturing equipment and required facilities to convert renewable chemicals and other biobased outputs of biorefineries into end-user products on a commercial scale.
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For each loan guarantee request, the lender or borrower must submit to the USDA a non-binding letter of intent to apply for a loan guarantee at least 30 days prior to the application deadline. That letter must identify the borrower, the lender and any project sponsors; describe the project and project location; describe the proposed feedstock, primary technologies of the facility, and primary products produced; estimate the total project cost and amount of loan requested; and identify the application cycle due date.
The application process for the program is divided into two phases. Phase one applications will provide information needed to determine the lender, borrower and project eligibility; preliminary economic and technical feasibility; and the priority score of the application. Based on the priority score ranking, the USDA will invite applicants to submit phase two applications. The agency said phase two application materials will be submitted as the project planning and engineering are finalized and will include information such as environment compliance information, technical report, financial model, and the lender’s credit evaluation.
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