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Renewable Fuels: Creating Jobs and Spurring Innovation
Posted 3 February 2015 in
Since its passage in 2005, the Renewable Fuel Standard (RFS) has sparked innovation and investment in communities across the United States. More than just spurring growth in the traditional ethanol industry though, the RFS has also accelerated and encouraged the development of the next generation of clean, renewable fuel.
As an op-ed in Roll Call notes, at a time when overall foreign direct investment was falling in the United States, projects in the biofuels sector were attracting hundreds of millions of dollars from around the world. These investments were on the verge of launching a whole new era of economic growth for rural communities across the United States when the EPA threatened to change the way it administers the RFS.
Though the EPA has since delayed that decision, the uncertainty has led foreign investors to pause as they wait to see whether the Obama administration will recommit to a strong RFS.
The impact of this uncertainty has been immediate and damaging for this growing industry.
Despite the successful completion of a $500 million production facility in Kansas, Abengoa, a Spanish company, is no longer considering additional investments in cellulosic ethanol in the U.S.
After investing some $500 million in R&D and production in California, Nebraska, and North Carolina, Novozymes, a Danish biotech company, is not planning further investment in the U.S. advanced biofuels market.
After opening a cellulosic plant in Iowa with American partner POET, DSM, a Dutch company, now sees China as the best place to invest.
These projects show the promise and possibility of sustained commitment to cellulosic ethanol in the U.S. Now, more than ever, we need President Obama to stand up for a strong RFS.
It’s not too late to get the final rule right and to make sure the United States is the leader in producing the cleanest fuels in the world.
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