U.S. Secretary of Agriculture Tom Vilsack used the dedication of an algae biofuels demonstration plant here to repeat his contention that ethanol is still the most viable way for the U.S. to "wean ourselves off foreign oil."
"It's a way to create jobs in small towns," Vilsack told about 200 people gathered at the Green Plains Energy plant at Shenandoah, where a demonstration project to develop algae for use in biofuels was launched in 2009.
"The only way we can continue to grow in this part of the country is for our young people to have access to high-tech, scientific jobs for young people who want to live and raise their families here," Vilsack said.
Vilsack told a Senate committee this week that abruptly ending the 45-cent-per-gallon subsidy for ethanol would kill jobs in rural America. But economists have said the impact on the industry would be relatively small since refiners are required to use the biofuel.
The algae project is an outgrowth of Green Plains' conventional ethanol operation. "This project can represent an important part of the future of biofuels," Green Plains chief executive officer Todd Becker said.
Vilsack noted that the United States has reduced its percentage of imported oil from 60 percent to 52 percent in two years, and noted "biofuels are the major reason."
"There is tremendous opportunity here in western Iowa with this project," Vilsack said.
The Green Plains plant has received money from both the Iowa Power Fund and the U.S. Department of Agriculture.
After his speech Vilsack said he isn't worried that a political war may develop between ethanol and conventional oil and gas interests over aid for new pump and tank systems in gas stations.
Ethanol groups want assistance for new blender pumps that would accommodate different blends of ethanol.
Natural gas advocates want to begin converting the nation's automobile fleet and gas stations to natural gas as a transportation fuel.
"We need a diversity of fuels," Vilsack said.
He said that advocacy of ethanol has become more difficult with rising corn prices and farm incomes.
"But when you explain to people how hard agriculture is, and how important it is to revitalize rural America and how we need to reduce dependence on foreign oil, then people understand," Vilsack said.
Vilsack and Environmental Protection Agency administrator Lisa Jackson will be in Newton on Tuesday to tour a biodiesel plant. They will also visit a livestock operation near Pleasantville and a row crop farm near Prairie City.
