The US Energy Department has allotted funds of around $18m for four innovative pilot-scale biorefineries in the states of California, Iowa and Washington.
These bio-refineries will test renewable bio-fuels as an alternative for fuels for cars, trucks, and planes, besides meeting military specifications for jet fuel and shipboard diesel.
It includes production of bio-fuel from non-food biomass, waste materials, and algae, creating cost-effective replacement to existing petroleum-based fuels.
Commenting on the funds allotment, Energy Secretary Steven Chu noted: "The innovative biorefinery projects announced today mark an important step toward producing fuels for our American military and the civil aviation industry from renewable resources found right here in the United States."
The finance aid, however, is said to cover only half of the cost to be incurred under the program.
Meanwhile, the companies that secured the funds include Frontline Bioenergy with $4.2m, Cobalt Technologies with$2.5m, Mercurius Biorefining with $4.6m and BioProcess Algae with $6.4m.