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Vilsack touting a clean energy tax credit in farm bill
By ANN ALLEN
Indiana Correspondent

WASHINGTON, D.C. — During a conference call in late May, USDA Secretary Tom Vilsack hailed the opening of Novozymes’ new enzyme plant in Blair, Neb., for its innovation in producing enzymes from solid waste, corn stover and switchgrass to supply some of the first advanced biorefineries.

Vilsack said one of the ways Novozymes made its project work was by taking advantage of the 48C Advanced Energy Manufacturing Tax Credit. He said without the 30 percent tax credit designed and directed to advance energy manufacturing, the plant would not have been possible.

Novozymes President Adam Monroe agreed. “This is a $200 million investment that we made,” he said. “The U.S. supported us with $28.4 million in the tax credit, roughly 10 percent of the after-tax cost of the plant.

“In the middle of a rather shaky global economy, it allowed us some confidence to speed up the construction process and allowed us to build this plant so it was quickly able to expand.”

Novozymes, a Danish bio-innovation company and self-described world leader in the production of enzymes, has its American headquarters in North Carolina. With more than 600 products manufactured in eight locations, the company constantly looks for ways to use waste constructively, including alternative fuel sources.
“We see the potential of the biobased economy,” Monroe said. “Biomass is a massive resource in the U.S. and secondly, we are the home of biotechnology know-how in the world. When you combine the two, it’s a massive strategic resource for the U.S.”
“(48C), along with other tax credits, creates the opportunity for a clean energy future with three important results,” Vilsack added. “They are increased farm income, job creation and reduction of our reliance on foreign oil that creates opportunities in the Midwest, not in the Middle East.”

The U.S. Senate Armed Services Committee recently voted to block the U.S. Department of Defense’s use of renewable energy fuels, a move that Vilsack said was disappointing.

“It fails to recognize and appreciate the enormous potential of this industry to revitalize the rural economy,” he added.

“Transitioning from an economy reliant on fossil fuels to one that has good diversity is a great thing for this country and for rural America. It is beyond me why we would not help this industry.”
6/13/2012