H.R. 3084:

Furfural production to benefit from proposed bill!

Washington DC (USA), September 2013: The proposed legislation[1] (introduce by Rep. Bill Pascrell, Jr. (D-NJ) and cosponsored by Rep. Steve Stockman, R-Texas) is described as a “bipartisan legislation which provides renewable chemical producers access to a production tax credit when they create American jobs and reduce our dependence on foreign oil.”

Furfural was first commercially produced in the USA in 1922. Today the USA, one of the major and growing markets, imports 100% of its demand from China, Thailand, the Dominican Republic and South Africa. Furfural is one of the top 30 renewable chemicals[2] and a building block for a huge variety of chemicals, polymers and plastics. DalinYebo has undertaken several studies in North America and we see many reason why there will be a renaissance:

  Abundant feedstock:

  Biomass/Agricultural residue processing (GreenEnergyPark™)

  Furfural production is complimentary (bolt-on biorefining) to e.g. pulp, cellulosic ethanol, corn-processing, etc.

  Creation of green jobs in rural USA

  (Shovel ready) projects with solid returns, that are attractive investments (for Venture Capital, Private Equity).

  Technology that is more efficient (and has options for further improvements), compared to currently used processes.


The (proposed) Legislation

According to the text of the legislation, the measure would create a production tax credit equal to 15 cents per pound of eligible content contained in renewable chemicals. Eligible content is defined to mean the biobased content percentage of the total mass of organic carbon in a chemical, as determined by ASTM D6866. The ASTM D6866 standard is used to determine the biobased content of solid, liquid and gaseous samples using radiocarbon analysis. It is the same method used by the USDA’s BioPreferred program to measure biobased content.[3]

What this means in practice and for furfural

Furfural 100 lb
Organic Carbon 62 lb
Tax credit 15cents/lb
Production tax credit per lb of furfural 9cents
For a small, medium and large furfural factory, this would equate to tax credit between $125,000 to $200,000 to $425,000 per year, respectively. – Time will tell whether these incentives will bring furfural production back to the mother country and for the benefit of green job creation in rural America.



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[1] www.house.gov  (was: http://www.house.gov/apps/list/press/nj09_pascrell/pr9132013.shtml)

[2] Furfural: Green Chemical Building Block  

[3] Biomass Magazine  

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