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The agency will provide loan guarantees of up to $250m to develop biofuel and chemicals projects.
Oregon biowaste and biomass business Pacific Ag will use the raise to acquire its regional competitor, Calagri.
Despite worries about competition for land over food and fuel production leading to food security fears, a DOE report says bioenergy and food security can be mutually supportive.
The USDA is investing $8.8m in advanced biofuel production from non-food plant sources, as it supports the industry in a challenging economic environment.
Equity-backed Biodico has received $1.2m in California grant money to bring renewable energy to US farms.
Seven US universities will receive funding for research to make biofuel production more efficient and less costly.
The project, partly financed through the group's own Summit Brazil Renewables Fund I, will gain cost advantages from its location in the country’s interior.
The company plans to produce biofuel from sweet sorghum, which is less subject to market volatility than corn or sugar.
Ethanol's lower-than-petrol pricing meant the amount put into fuel went up in 2015.
The Department of Agriculture will help farmers, ranchers and forest landowners interested in growing new crops for biomass.