The funds will be used for the construction of INEOS BioEnergy Center to be situated near Vero Beach, Florida.

The BioEnergy Center will produce 8 million gallons (24,000 tons) of advanced biofuel per year together with 6 MWp of renewable power from biomass including yard, vegetative and wood wastes and municipal solid waste.

Financing from the USDA program is provided to advance the next generation bioenergy technologies into the commercial sector.

Peter Williams, CEO of INEOS Bio and Chairman of INEOS New Planet BioEnergy, says: “These programs are providing the funds needed to enable the US to achieve a leading position in the bioenergy sector through projects such as ours.

“As well as directly assisting construction of the INEOS New Planet BioEnergy commercial plant, the loan guarantee also represents an important step along the road to replication of this exciting new technology through INEOS Bio’s licensing program.”

The USDA 9003 program provides guaranteed loans for the development and construction of commercial-scale biorefineries or for the retrofitting of existing facilities using eligible technology for the development of advanced biofuels.

The BioEnergy Center, slated to begin production in 2012, is anticipated to provide175 jobs during construction and 50 full-time jobs once the facility is completed.

INEOS Bio’s bioenergy technology based on an anaerobic fermentation step, through which naturally occurring bacteria convert gases derived directly from biomass into ethanol.

It can produce ethanol and renewable energy from numerous feedstocks, including construction waste, municipal solid waste and forestry and agricultural waste.