US cellulosic fuel makers press Obama to alter biofuel plan

martes 9 de septiembre de 2014 18:10 GYT

By Ayesha Rascoe

WASHINGTON, Sept 9 (Reuters) - The nascent U.S. cellulosic ethanol industry has urged the White House to change course on targets for biofuel use, warning in a letter to President Barack Obama on Tuesday that current policy risks losing investments to China and Brazil.

Federally set mandates for the use of fuels such as corn ethanol and cellulosic ethanol, made from plant waste like grasses and wood, must be based on the industry's ability to produce the fuel, not on infrastructure restraints, executives of several biofuel companies wrote.

The Environmental Protection Agency rocked the biofuels industry last year with a draft plan slashing requirements for blending renewable fuels into U.S. gasoline and diesel in 2014.

Companies including POET LLC, Abengoa Bioenergy and Dupont told Obama that investments in innovative fuel technology could be lost if EPA does not reconsider.

"If the proposed methodology is not fixed in the final rule ... the 2014 rule will have inadvertently done more than your worst critics have to harm a low carbon industry you have always championed," the executives said.

Following a backlash to the initial proposal, the companies said they expect the administration to raise the targets from the proposed rule to the final rule, sent to the White House for review in August.

But an increase in targets will not be enough to support new investment, the companies said, as long as the agency continues to limit targets based on the number of fueling pumps available to dispense higher blends of ethanol in gasoline - a variable mostly controlled by big oil companies.

The Renewable Fuel Standard requires increasing amounts of ethanol and biodiesel to be mixed into U.S. fuel supplies each year until 2022.   Continuación...