United States President Joe Biden has committed more than $US800 million ($1.1 billion) toward boosting the nation's biofuels industry.
The investment includes funding for biofuels producers and infrastructure.
In a win for farmers, the United States Department of Agriculture will contribute $US700m to the new Biofuel Producer Program.
This program falls under the Pandemic Assistance for Producers initiative and will support agricultural producers that rely on biofuels producers as a market for their agricultural products.
Payments will be made to biofuels producers, which in turn will help maintain a viable market for agricultural products. Awards are set to kick in before the end of April.
This was one of the plans outlined by Agriculture Secretary Tom Vilsack on April 12.
"President Biden understands that by expanding our ability to meet our energy needs with homegrown biofuels, we can ensure a more reliable and affordable source of fuel for American consumers, while supporting American agriculture and sustainable, domestic energy production, creating good-paying jobs, and generating economic opportunities, especially in rural and farm communities," Mr Vilsack said.
"The President's announcement builds on his bold actions to reduce energy prices and tackle rising consumer prices caused by Putin's price hike by tapping into a strong and bright future for the biofuel industry, in cars and trucks and the rail, marine, and aviation sectors and supporting use of E15 fuel this summer.
"In the short term, American families will experience relief from rising fuel prices and in the long-term, our country can continue to realise energy independence made possible by American agriculture and manufacturing."
The USDA will provide $US5.6m for infrastructure for renewable fuels through the Higher Blends Infrastructure Incentive Program.
California, Delaware, Illinois, Maryland, New Jersey, New York, and South Dakota will receive a portion of this funding to build infrastructure to expand the availability of higher-blend renewable fuels by approximately 59.5 million gallons (270 million litres) per year.
The USDA will also provide $US100m for grants for biofuels infrastructure to increase the use of higher blends of bioethanol and biodiesel, and make these products easier for gas stations to sell.
Grants can be used on refuelling and distribution facilities for the cost of installation or retrofitting or otherwise upgrading infrastructure required at a location to ensure the environmentally safe availability of blended fuels.
This funding will apply to supporting biofuels for railways as well.
A partnership to advance the use of cleaner and more sustainable aviation fuels was also announced.
Closer to home, Qantas started purchasing sustainable aviation fuel on an ongoing basis in January.
The company said blended SAF would represent up to 15 per cent of its annual fuel bought out of London Heathrow Airport, reducing carbon emissions by around 10pc on the flight route.
Qantas also signed a biofuels project deal last month with Japanese oil and gas company Inpex and ANZ.
The companies plan to partner with farmers in the Western Australian wheatbelt to plant trees for carbon credits that could later be harvested to produce biofuel.
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