Governor Rick Perry awarded a $5 million grant to Texas A&M for bioenergy research and biofuel advancements on Monday.
The money comes from the Texas Emerging Technology Fund.
Perry used a stop in Houston to announce the grant as part of the Texas Bioenergy Strategy. He says Texas will focus on using nonfood products for energy production.
Perry also says the effort won't conflict with the state's multi billion dollar cattle industry.
Biofuels, such as ethanol, are made from corn and other ag products. But Texas ranchers use those same food items to feed their cattle.
Perry said Texas will focus on creating biofuels through cellulosic feedstock such as switchgrass, wood chips and corn stems.
A&M and Chevron are working together on research for accelerated harvesting of non-food crops for conversion into biofuel products.