An environmental resource for East Tennessee Businesses

Repeal of ethanol subsidies would affect University of Tennessee biofuels project

Last week, the U.S. Senate voted to repeal billions of dollars in annual ethanol subsidies, including the 45-cent credit to oil refiners adding ethanol to gasoline and the 54-cent tariff on ethanol imports.

Business writer Hugh Willet highlighted projects in East Tennessee that would be affected if the measure is passed by Congress in the daily Knoxville News Sentinel.

Ethanol is made from corn and other biomass materials such as switchgrass. The University of Tennessee's Department of Agriculture has been working with private industry and local farmers to promote the commercially viable production of ethanol.

Genera Energy LLC, formed in 2008 and wholly owned by the University of Tennessee Research Foundation, plays a key role in implementing the University of Tennessee's Biofuels Initiative, a $70.5 million state investment in developing a cellulosic biofuels industry.

The company has partnered with DuPont Danisco Cellulosic Ethanol to build and operate a small-scale cellulosic ethanol biorefinery in Vonore, Tenn., using local switchgrass.

Read more about biofuel production projects in Tennessee at the News Sentinel website.

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