USDA puts cash into higher-blend biofuel projects

The USDA said it will provide up to $100 million in matching funds for “state-led efforts to test and evaluate innovative and comprehensive approaches to market higher blends of renewable fuel, such as E15 and E85.” The standard blend rate is 10 percent, known as E10. The goal is to double the number of blender pumps at service stations. “This new USDA partnership will help support the installation of fuel pumps capable of supplying higher blends of renewable fuel by partnering with states to fund innovative, public-private partnerships to test more comprehensive approaches to marketing such blends,” the USDA said.

The department operates economic development programs in rural America and in small towns and cities.

An ethanol trade group, Growth Energy, said E15 is sold at more than 120 stations in 18 states. Another ethanol group, Renewable Fuels Association, said there are 3,250 stations nationwide that sell E85. There are around 114,000 gas stations.

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