TOLEDO, Ohio — The U.S. Energy Department says it will spend close to $600 million to help build renewable energy plants that will turn wood chips, cornstalks and algae into fuel.

The government will team up with private companies to create 19 biorefinery projects in 15 states, including Hawaii.
Hawaii will receive $48 million to fund a biorefinery plant in Kapolei and to test and produce green gasoline, diesel and jet fuel from agricultural residue, woody biomass, dedicated energy crops and algae, Sens. Daniel K. Inouye and Daniel K. Akaka announced today.
UOP, a Honeywell company working with the Kapolei Integrated Bio-refinery will receive $25 million and Clear Fuels Technology, a Hawaii based company founded in 1998, will receive $23 million.
The initiatives will create more than 600 jobs on Oahu and the Big Island.
Federal officials announced the undertaking at a news conference Friday in Toledo, Ohio, where a pilot plant will turn agriculture and forest waste into diesel fuel.
UOP will test a variety of biomass feed stocks at Tesoro’s hydrogen conversion-based fuels refinery in Kapolei during the pilot phase but will utilize only locally grown feed stocks once commercial scale production levels are achieved.
Clear Fuels Technology will use the funds to demonstrate the technology and invest in integrated biorefinery facilities in Hawaii and on the Mainland in 2011.
Clear Fuels Technology partners include the Hawaii Natural Energy Institute and the Hawaiian Electric Company.

The 15 states to receive funding from the American Recovery and Reinvestment Act are California, Colorado, Florida, Hawaii, Illinois, Iowa, Louisiana, Michigan, Mississippi, Missouri, New Mexico, Ohio, Oregon, Pennsylvania and Texas.
The Associated Press contributed to this report.