Web exclusive posted Feb. 3, 2009, at 2:57 p.m. CST

Pennsylvania Gov. Edward G. Rendell recently announced the state will fund 49 clean energy and biofuel projects in the state. "These are difficult times for businesses to raise the capital needed to develop new products and processes, even for the renewable energy and biofuels industries that had been among the fastest growing globally just a few months ago," said Rendell in a press release announcing the grant funding. "And even though energy prices have subsided recently, we've seen how volatile these markets can be and how high energy prices can hurt an economy."

The projects will be funded through two state grant programs. The Energy Harvest program will contribute $7.2 million in grants, while the Alternative Fuels Incentive Grant program will award $6.5 million to the projects. Grants awarded through the Alternative Fuels Incentive Grant program aim to assist companies that produce and market alternative fuels and biofuels, related infrastructure, and assist consumers that purchase hybrid vehicles. The Energy Harvest program is designed to promote awareness and build markets for cleaner or renewable energy technologies.

It's estimated that these 49 projects will leverage more than $53.1 million in private investment, create at least 77 jobs and reduce carbon dioxide emissions by 2.5 million tons. Combined, the projects will reduce consumers' energy costs by nearly $46 million annually. One of the energy cost savings achieved is that the programs are expected to offset the use of 250.1 million gallons of diesel and #2 heating oil.

Twelve biodiesel projects received funding through this round of grants. In Bedford County, Community Foundation for the Alleghenies will receive $199,191 to renovate the Whispering Creek Renewable Energy Center environmental education facility to demonstrate the benefits of renewable energy generation and energy-efficient upgrades to an existing structure. The learning center will provide a location for hands-on demonstrations of biodiesel, wind, solar and geothermal technologies. The project will also generate five permanent full-time jobs.

Two projects will receive funding for process technology research. Center County-based Matson and Associates Inc. will receive $120,000 to demonstrate the effectiveness of several catalysts in processing alternative, lower-cost biodiesel feedstocks. Dauphin County-based Middletown Biofuels LLC will receive $654,845 to demonstrate pretreatment of alternative biodiesel feedstocks using controlled flow cavitation technology, which has the potential to lower production costs and improve the company's competitive position relative to out-of-state producers. The project is expected to have a production capacity of nearly 4.6 MMgy and reduce greenhouse gas emissions by up to 9,950 tons per year.

Allegheny County-based Pittsburgh Region Clean Cities will receive $166,695 to install biofuels storage and dispensation infrastructure to serve regional fleets.

In addition, eight entities will receive funding to help buy down the incremental costs of biodiesel blended fuel. These projects include:

• Chester County-based Tredyffrin-Easttown School District will receive $56,979 to buy-down the incremental costs of biodiesel-blended fuel. The funding will also be used to clean a storage tank for holding and dispensing the product. The project will displace the use of 73,000 gallons of diesel.


• Chester County-based Great Valley School District will receive $36,166 to buy-down the incremental costs of biodiesel-blended fuel. The project will displace the use of 52,000 gallons of diesel.


• Chester County-based Owen J. Roberts School District will receive $36,400 to buy-down the incremental costs of biodiesel-blended fuel. The project will displace the use of 52,000 gallons of diesel.


• Chester County-based West Chester University will receive $4,800 to buy-down the incremental costs of biodiesel-blended fuel. The project will displace the use of 19,000 gallons of diesel.


• Delaware County-based Radnor Township School District will receive $12,788 to buy-down the incremental costs of biodiesel-blended fuel.


• Montgomery County Intermediate Unit #23 will receive $42,132 to buy-down the incremental costs of biodiesel-blended fuel. The project will displace the use of 381,489 gallons of diesel.


• The City of Philadelphia's Office of Fleet Management will receive $131,100 to buy-down the incremental cost of biodiesel-blended fuel. The project will displace the use of 500,000 gallons of diesel.


• The Energy Co-op. Association of Pennsylvania will receive $170,850 to buy-down the incremental cost of 240,000 gallons of biodiesel-blended fuel for use by six municipalities and school districts.