WASHINGTON – The U.S. government announced a $10 million investment Tuesday in the Northeast for next-generation biofuel research, the latest move by the Obama administration to fund clean energy initiatives.

The grant, announced by the Department of Agriculture, goes to innovative research led by Penn State University, focusing on non-food biomass sources such as willow, miscanthus and switch grass.

The research will address the entire biofuel chain, from harvesting, crop genetic development, to processing techniques, according to the department.

“This is a welcome initiative to finally broaden the biofuels supply chain beyond monocrops by adding in a mix of sustainable feedstocks like cellulose, waste products and algae,” said Riggs Eckelberry, CEO of OriginOil, Inc., a company that provides algae biomass technology.

George Boyajian, vice president of Primus Green Energy, said the research is key to maintain the security of the food resource while increasing agricultural production of energy crops.

Ethanol and biodiesel, which use corn as the main feedstock, are the most commonly used biofuels in the United States.

“The important part here [of this research] is you don’t want to compete with food crops,” Boyajian said. “When you are competing, feedstock’s price will be driven up.” Primus Green Energy is in partnership with Penn State on this project.

The research will also help the Northeast reduce reliance on oil, said Thomas Richard, the leader of the research team and director of the Penn State Institute of Energy and the Environment.

The Northeast is among the largest consumers of petroleum, with approximately 20 billion gallons of transportation fuel consumption every year. But the lack of oil refining capacity makes the region heavily relies on imported petroleum products, which leaves the region vulnerable to supply disruptions, according to Northeast Regional Biofuel Action Plan prepared in 2008.

With sufficient rainfall, a variety of native plants that can be turned into biofuels, Richard suggested that biofuels have a good potential in the northeastern region.

“The creation of this biofuel system will significantly contribute to improving rural prosperity and job creation in the Northeast by funding effective public and private sector partnerships,” said Agriculture Secretary Tom Vilsack in the press release.

Biofuel industry has helped created 400,000 jobs directly. When the industry reaches the goal of 60 billion gallon production, a million jobs will be supported, said Vilsack.

Tuesday’s announcement completed the department’s effort on supporting public and private research on biofuel in every major American region.

Last year, the University of Washington, Iowa State University and the University of Tennessee also received grants from the department for biofuel research.