Novozymes gets USD 28.4 million tax credit to advance biofuels production, create jobs
President Obama awards tax credit for the construction of Novozymes’ new Nebraska facility.
Novozymes, the world leader in bioinnovation, has received an Advanced Energy Manufacturing Tax Credit of USD 28.4 million from the Obama Administration for the construction of its new enzyme manufacturing facility in Blair, Nebraska. The facility, which will produce enzymes used to make advanced biofuels, will create more than 100 green jobs for the state.
“We believe our selection for this tax credit is a reflection of the tremendous potential of advanced biofuels to create green jobs and contribute to meaningful reduction of greenhouse gases in the near-term,” said Adam Monroe, President of Novozymes North America. “Novozymes applauds the continued support of the Obama Administration to further the development of clean energy technologies like advanced biofuels.”
The tax credit awarded to Novozymes is part of the American Recovery and Reinvestment Act. In order to foster investment and job creation in clean energy manufacturing the Act included a tax credit for investments in manufacturing facilities for clean energy technologies. A total of USD 2.3 billion in tax credits is being allocated for investments in 183 manufacturing facilities for clean energy products across 43 states.
Novozymes’ tax credit is dependent on the production of advanced biofuels and would benefit the company in the shape of reduced tax payments. The benefit could be up to USD 18 million in total after tax. It would become available from 2012/2013 and received over a couple of years.
Government incentives like this are critical to attracting the necessary private sector investment to ensure the commercialization of advanced biofuels. Novozymes will invest a total of USD 160-200 million in the construction of the facility in Nebraska and applied for the credit in September 2009. The blending facility at the site became operational as of November 2009 and is currently shipping enzymes to customers globally. The facility is expected to be fully operational in mid-2012.