Advanced biofuel industry pushes for tax credit

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The advanced biofuel industry is urging Congress to grant an investment tax credit to help producers develop commercial-scale projects. Advanced biofuel producers are eligible for a federal production tax credit, but the incentive is unused because there are no operating commercial-scale facilities.

Nearly 40 groups signed a letter pointing out that no commercial cellulosic biorefineries will be commissioned before 2011 because of a lack of funding due to the economic downturn. Attracting private capital is virtually impossible, according to the letter, as conversion technologies for advanced or cellulosic biofuels are precommercial and most investors are unwilling to take technology risks.