Weather Alerts 6 View »

Nevada biofuel plant gets federal loan guarantee


Video by

Nevada biofuel plant gets federal loan guarantee

CREATED Sep 4, 2014 - UPDATED: Sep 4, 2014

LAS VEGAS (AP) -- The developer of a northern Nevada biofuel production plant declared his project ready for construction, after receiving a federal loan guarantee for just under 40 percent of the cost.

Fulcrum Sierra Biofuels E. James Macias said at the start of Thursday's annual National Clean Energy Summit that construction will start this year in the same Storey County industrial park that will host a $5 billion factory for carmaker Tesla to produce vehicle batteries.

Officials say the Sierra BioFuels Plant will cost $266 million and take two years to build.

Federal Agriculture Secretary Tom Vilsack joined Senate Majority Leader Harry Reid and Macias announcing the $105 million loan guarantee.

The plant aims to convert 200,000 tons of trash annually from the Lockwood Regional Landfill in Sparks into diesel and jet fuel.