Biomass crop subsidy carries hefty U.S. pricetag

Reuters UK
Wed Feb 3, 2010 11:53pm GMT

WASHINGTON, Feb 3 (Reuters) - A new U.S. program that subsidizes biomass crops for energy use may cost $263 million this year -- nearly four times its expected cost -- with an opening emphasis on forest and sugar scrap.

The Obama administration cited the Biomass Crop Assistance Program (BCAP) on Wednesday in steps to encourage clean energy production. It would broaden the geographic base of a bioenergy industry now dominated by corn ethanol production mainly in the Midwest.

BCAP went into operation last summer on an interim basis. A more permanent regulation was opened for comment by the Agriculture Department on Wednesday.

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