USAD extends bio-fuel agreement with federal aviation industry to five years

The agreement, which also includes third party aviation industries, is aimed at reaching annual production rate of 1 billion gallons of drop in aviation bio-fuel by 2018.

Agriculture Secretary Tom Vilsack and Transportation Secretary Ray LaHood signed the agreement at the Advanced Biofuels Summit at Gaylord National Harbor in Maryland.

The extension of partnership comes on the back of federal government’s plan to tap clean energy technology providing energy independence besides job creation.

Commenting on the developments, Vilsack stated that the partnership would work towards providing American made bio-fuel solution to cater to aviation fuel needs besides reducing reliability on foreign fuels.

"USDA is pleased to partner with the FAA in our quest to develop alternatives to fossil-based fuel, which is critical to reducing carbon emissions and protecting the environment," added Vilsack.

LaHood noted: "Through the use of sustainable alternative jet fuels, we are showing the world that we can come together to solve our greatest environmental challenges."

Earlier in October 2010, USDA and the FAA entered into a three-year agreement to develop aviation fuel from forest and crop residues and other feedstocks to reduce dependence on foreign oil.