How ironic is it that on the same day an Israeli company (Blue Sphere) secures financing for a $25 million plant that will convert food waste into electricity in Charlotte, Steven Burke and his staff learn officially that the North Carolina Biofuels Center will be shut down due to loss of funding.

The Center already was three weeks into a planned 90-day shutdown after it became apparent that the sole source of its funding was going to be cut. At least 14 people will lose their jobs, and more will be laid off as grant funding for biofuels projects runs out. But there are longer-term economic implications for the state as well, says Burke.

North Carolina was positioned to be a biofuels leader with its state-backed non-profit effort that traces founding back to the N.C. Biotechnology Center and now faces its own 26 percent budget slash.

WRALTechWire talked with Burke, a long-time executive at toe Biotech Center before taking over the biofuels effort, about the looming end to a decade-old effort to make the state a leader in biofuel production. “Dismay and disbelief,” he says of his reaction and that of others.

The news came late Sunday when lawmakers in Raleigh agreed on a new budget that wipes out the state’s $2 million funding for the Biofuels Center, which is located in Oxford. Even though Gov. Pat McCrory had called initially for a 20 percent in funding, the Republican-led House and Senate prevailed with a 100 percent wipe out.

The Skinny’s Q&A with Burke:

As I am sure you are aware the budget passed Sunday night does indeed end funding for the Biofuels Center.

Yes, and as are many others in NC and beyond.

What is your reaction to the decision – both short-term for you, your staff and the Center’s efforts – and long-term as this affects energy supplies for the state?

The Center, a growing biofuels community statewide, and companies considering new facilities here share dismay and disbelief that North Carolina has visibly pulled back from long-term, organized, and deliberate commitment to long-term biofuels development.

North Carolina will lose the nation’s model agency for comprehensively addressing the complicated requirements of new sector merging land, technology, production, agriculture and forestry, environment, energy independence, rural development, and enormous economic gain. The state will also lose unprecedented opportunity to capture early advantage in a rapidly developing industry – and from its evolutionary expansion into related bioproducts and biomaterials. In coming years, meeting national policy goals, billions of gallons of biofuels will be made somewhere in this country. We are unsettled and regretful that the gain will now likely come to other Southeastern states eager to fill in NC’s new biofuels void.

Willfully lessening likelihood of NC’s future gain from the enormous biofuels and bioproducts sector seems a curious and illogical decision for a state so needful of new jobs, new economic thrusts, and rural advantage.

How are you progressing with the shutdown?

The Center’s executive committee has laid out a framework for wrap- up and termination, to begin upon signing of the 2013-14 budget and elimination of the Center’s funding. The Center will then responsibly, carefully, and effectively terminate its complex activities and grant programs, shut down its growing and development projects, convey reports and information to state agencies, dissolve the non-profit corporation and its board, and undertake a final audit. Following the audit, all unspent monies will be returned to the state through the NC Department of Commerce.

How many jobs will be affected directly by the decision? How many jobs do you estimate will be affected indirectly by loss of grants and other programs?

Immediately: 14 staff members at the Center.

Statewide: over 20 persons statewide have some level of employment funding through the 46 grants and projects we will have to now terminate.

Over time: diminishment or loss of NC’s growing credibility as a site for biofuels development will can lessen employment and economic gain from new production facilities, growing of feedstocks, logistics, and support services.

What will be the shutdown date?

Working efficiently, staff will plan on completing all wrap up activities, reports, and audits within 90 days.

What happens to facilities, equipment and other assets?

The Center’s headquarters is leased for $1 a year from the NC Department of Agriculture. The building also has 8 laboratories recently upfitted for company incubation with federal DOE monies. The NCDA will now have to elicit clients and ensure good use of the facilities.

Other equipment purchased with grant or project monies is owned by the grantee.

The Center has no other physical assets.

To be lost, unfortunately: the more valuable asset of five years of biofuels experience, problem-solving, company interactions, and national contacts gained by staff.

Do you at this time have plans for what you hope to do next?

Nothing past responsible cessation.