ERIE – Department of Environmental Protection Secretary Kathleen A. McGinty today toured the site where Lake Erie Biofuels is constructing a state-of-the-art facility that will produce 45 million gallons of biodiesel each year, and spoke with company and local officials about the economic opportunities created by Governor Rendell’s Energy Independence Strategy.
“Last week, Gov. Rendell set a new course for Pennsylvania’s energy future by announcing that he will invest $850 million to significantly expand Pennsylvania’s alternative fuel and clean energy industries, stabilize electricity rates for businesses, reduce dependence on foreign oil and cut consumer energy costs by $10 billion over the next 10 years,” McGinty said. “Lake Erie Biofuels is poised to take full advantage of Pennsylvania’s new energy economy, which will increase the production of homegrown renewable fuel sources such as ethanol and biofuels to match the amount of liquid-fuels currently imported from the Persian Gulf.”
Lake Erie Biofuels will employ 40 workers once the plant is fully operational in August, and it will create biofuels from diverse sources.
Biodiesel is becoming an increasingly important piece of the home heating oil market in Pennsylvania because it can be used in a blend with petroleum diesel fuel and home heating oil.
Lake Erie Biofuels received $625,000 from Pennsylvania’s Alternative Fuels Incentives Grant program last December to help the company produce 12.5 million gallons of biodiesel by this summer.
The AFIG program offers incentives of 5-cents-per-gallon to Pennsylvania producers of biodiesel and ethanol. The grants, awarded in December, leveraged more than $40 million in private funds for the production of almost 64 million gallons of clean-burning biodiesel annually, as well as for the installation of storage tanks that are needed to distribute and sell biofuels.
AFIG grants also cover 100 percent of the added costs to eligible applicants who purchase high-percentage biofuels blends for use in their fleets.
“With Governor Rendell’s leadership and the initiative of private industry, we are growing our own energy and growing our economy, while ensuring Pennsylvania’s energy independence,” McGinty said.
Rendell’s proposed Energy Independence Strategy mandates the use of biofuels and ethanol in all transportation fuels in Pennsylvania, with a goal of one billion gallons of production by 2017, or the equivalent to all oil currently imported to Pennsylvania from the Persian Gulf.
The Governor’s proposal will push Pennsylvania into the top tier of states taking steps to cut consumer energy costs and significantly expand the alternative fuel, clean energy and conservation sectors. The enactment of new laws, regulatory policies and the creation of the $850 million Energy Independence Fund will save consumers $10 billion in energy costs over the next 10 years, reduce reliance on foreign fuels by increasing Pennsylvania’s clean energy production capacity; and expand energy production and energy technology sectors to create more jobs.
The Energy Independence Strategy offers incentives for electricity generators to invest in conservation measures, and offers rebates to small businesses and homeowners who trade in inefficient home cooling appliances or purchase new solar energy systems.
The Energy Independence Fund will offer $106 million in venture capital, loans and grants to be matched at least dollar for dollar by private sector capital and $500 million to initiate new clean energy economic development projects.