Administrator

The Greater Las Cruces Chamber of Commerce's Board of Directors has given its support to Congress' efforts to bolster the local economy and increase jobs through House Resolution 4168, the "Algae-based Renewable Fuel Promotion Act."  The bill would give algae-based fuels tax parity with cellulosic biofuels, which will help New Mexico's economy enormously over the next few years, and into the foreseeable future. 

The commercialization of algae-based fuel is expected to bring substantial economic growth to New Mexico.  Sapphire Energy, a leading algae-based fuel company, has already established a research and development center in Las Cruces that employs 30 individuals. Sapphire was recently awarded $104.5 million dollars by the federal government, for the construction of an Integrated Algal Biorefinery (IABR) in Columbus, N.M.  The construction and operation of Sapphire's IABR is expected to create 750 direct and indirect jobs in the region within the next two to three years.  Should Sapphire and algae-based fuels as a whole succeed, Sapphire will likely expand its commercial operations within New Mexico, and many other algae-based fuel companies would locate in the state as well. 

One critical factor in algae's success is whether it is treated similarly to other biofuel feedstocks.  Currently, the tax code gives cellulosic biofuels $1.01 per gallon of fuel produced.  However, algae are not cellulosic organisms; consequently, algae-based fuel would not qualify for the same $1.01 subsidy that cellulosic biofuels receive.  HR 4168 would level the playing field for algae by giving all algae-based fuels the same level of support cellulosic biofuels receive, and ultimately help New Mexico's growing algae-based fuel industry succeed.  This will reap great economic benefits for the local economy, and help spur job growth at a time when it is critically needed.