By Kathy McCarty
Staff Writer
ASHLAND — Acting Under Secretary Doug O’Brien, on behalf of Agriculture Secretary Tom Vilsack, announced last week that the U.S. Department of Agriculture is making payments
to support the production of advanced biofuel. USDA is making nearly $15.5 million in payments to 188 producers through the Advanced Biofuel Payment Program. Making the list of recipients are four Maine businesses, including Northeast Pellets in Ashland. The announcement was made in Omaha, Neb., at the National Advanced Biofuels Conference. 
Staff photo/Kathy McCarty
NEW STORAGE SILO BEING BUILT — Northeast Pellets, LLC, located in Ashland, will have a new storage silo in time for this year’s heating season — built, in part, with funds received through the USDA’s Advanced Biofuel Payment Program. The structure will be erected adjacent to the building at center and in front of where the stacked bags of pellets are pictured. When completed, the structure will hold 650 tons of pellets.
According to O’Brien, the USDA remains focused on carrying out its mission, despite a time of significant budget uncertainty. The announcement was one part of the department’s efforts to strengthen the rural economy.
“Producing advanced biofuels is a major component of the drive to take control of America’s energy future by developing domestic, renewable energy sources,” said O’Brien. “These payments represent the Obama Administration’s commitment to support an ‘all-of-the-above’ energy strategy.”
USDA Rural Development State Director Virginia Manuel said, “USDA Rural Development’s ongoing investments in Maine’s four wood pellet manufacturing companies is important and helps to sustain the growth of Maine’s vital biofuel industry, supports jobs and replaces use of fossil fuels with clean, renewable biomass energy in many of Maine’s homes, businesses and non-profit institutes.”
The funding is being provided through USDA’s Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include but are not limited to: crop residue; animal, food and yard waste; vegetable oil; and animal fat.
All four of Maine’s pellet companies have received payments for a total of $42,966 invested in Maine’s biofuel industry:
• Maine Woods Pellet Company, LLC, in Athens, has received a payment of $24,127;
• Geneval Wood Fuels, LLC, in Strong, has received a payment in the amount of $13,374;
• Corinth Wood Pellets, LLC, has received a payment of $3,081; and
• Northeast Pellets, LLC, in Ashland, has received a payment in the amount of $2,384.
Matt Bell, owner of Northeast Pellets, said the funds will be used toward his plant’s silo project.
“This was the largest biofuel producer quarterly payment we’ve received. We plan to use the funds toward our new bulk silo project,” said Bell.
Work is already under way for the construction of the storage facility.
“We are in the process of installing a silo that will hold 650 tons of bulk pellets to better serve our growing bulk market. This is approximately a $100,000 project and will be completed in time for this heating season,” said Bell.
O’Brien noted this announcement serves as another reminder of the importance of USDA programs for rural America and a reminder of the need for Congress to get a comprehensive Food, Farm and Jobs Bill done as soon as possible.
“Job seekers in rural America need new and expanded investments in renewable energy, biofuel and bio-based product manufacturing — all of which can help create jobs in rural areas,” said O’Brien.
Through the ABPP and other USDA programs, the department is working to support the research, investment and infrastructure necessary to build a strong biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel. More than 290 producers in 47 states and territories have received $211 million in payments since the program’s inception, including a total of $402.5 million in Maine communities last fiscal year.
