USDA announces assistance for biomass producers

A biomass facility in Europe.
A biomass facility in Europe.
The U.S. Department of Agriculture Farm Service Agency has announced sign-ups for the Biomass Crop Assistance Program (BCAP) to provide financial assistance to producers who deliver eligible material to biomass conversion facilities.

The program is designed to benefit producers, the developing biomass industry, the general public and the environment by expanding production and availability of renewable energy, USDA said.

Owners of eligible material can receive financial assistance for delivering qualified biomass to conversion facilities that use biomass for heat, power, bio-based products or advanced biofuels, which can be used to fuel farm equipment, for example.

Producers who sell these materials can apply for matching payments under the collection, harvest, storage and transportation (CHST) component of BCAP.

The matching CHST payments are paid at a rate of $1 for $1 per dry-ton equivalent received from a qualified biomass conversion facility, not to exceed $45 per dry-ton equivalent. A biomass owner is eligible to receive payments for two years.

The purpose of the matching payments is to assist biomass producers with the cost of delivering biomass to a qualified biomass conversion facility.