The U.S. Department of Energy will provide $786.5 million to increase the use and production of domestic renewable fuels, Secretary Steven Chu announced on Tuesday.

The funding from the stimulus package will help improve biofuel reliability and technology. Its goal is create third-generation biofuels like green gasoline, diesel and jet fuels, the DOE said in a statement.

Developing the next generation of biofuels is key to our effort to end our dependence on foreign oil and address the climate crisis -- while creating millions of new jobs that can't be outsourced, Secretary Chu said.

A sum of $480 million will be given to 10 to 20 biorefineries projects that will be operational in the next three years. Another $176.5 million will be given to biorefinery projects which had already been selected in the last two years.

Also, $110 million was allocated for fundamental research on the Biomass Program and $20 million for ethanol research. The DOE biomass program will leverage the agency's national laboratories and universities to improve biofuels reliability and overcome key technical challenges.

Energy