DOE funds biofuels and fuel cells

The Department of Energy says it will provide $160 million in cost-shared funding over three years to construct up to three biorefineries in the U.S. "This funding will support a much-needed step in the development of biofuels and renewable-energy programs," Energy Secretary Samuel W. Bodman remarked when announcing the program. DOE wants to demonstrate that commercial biorefineries can be profitable once initial construction costs are paid. There is a $100 million cap on any single-demonstration award, and projects are required to show a 60/40 industry/government cost share. The project is part of the Administration's Advanced Energy Initiative, which seeks to accelerate research and make cellulosic ethanol cost-competitive by 2012, offering the potential to displace up to 30% of the nation's current fuel use by 2030. Meanwhile, DOE will provide $48.5 million to FuelCell Energy to develop fuel-cell technologies for near-zero-emission coal-fired power plants that would produce both electricity and hydrogen. The work is part of DOE's Fuel Cell Coal-Based Systems program.