Dive Brief:
- The USDA will give Fulcrum Sierra Biofuels, LLC a $105 million loan for the construction of a facility that transforms municipal solid waste into jet and diesel fuel.
- The company received the loan through the Biorefinery Assistance Program. This marks the first loan the USDA issued for the production of bio jet fuel.
- The entire cost of the project is estimated at $266 million, so the USDA loan will cover approximately 40% of the expenses.
Dive Insight:
The plant, located in McCarran, NV, is expected to generate 11 million gallons of renewable fuel annually. And the USDA isn't the only organization that wants in on the action -- Fulcrum also scored an agreement with Cathay Pacific Airways in which it will supply the airline with 375 million gallons of jet fuel over a ten-year timeframe. That contract alone accounts for 2% of Cathay Pacific’s fuel usage.