- Velocys said the US Department of Agriculture (USDA) has invited it to submit a Phase II Application to obtain a loan guarantee for a commercial-scale biorefinery.

This invitation was made after a successful Phase I Application process. The loan guarantee could apply to up to $200m of debt as part of the total installed cost of the project.

The plant was being designed to produce about 19m gallons a year (1400 barrels per day) of renewable diesel fuel from about 1000 dry tons a day of woody biomass residues in the Southeast US.

"There is an abundant supply of low-cost feedstock sourced from this region that will provide a long term strategic supply of biomass to the plant," said Velocys in a statement.

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