Alternative Fuels to relocate from NY to PA; Pennsylvania to provide $1 million grant to idled biodiesel producer

In New York, Alternative Fuels put its biodiesel plant in Binghampton up for sale and announced that it will relocate to Pennsylvania.

The company will receive a grant of $1 million from the Keystone State towards production of algae-based biodiesel. The company ceased production in November, citing high operational costs in New York and high feedstock prices. The 3.5 Mgy plant used soybean oil as a feedstock.

Pennsylvania has in recent months been targeting the expansion of its biofuels industry. In recent months, a proposal has been introduced for a biomass conversion center in Clearfield that would provide job training and other service to up to 10 biofuels plants around the state, and would include a 30 Mgy ethanol plant at the Clearfield complex. A sponsor of the proposal, state Rep. Camille “Bud” George, said the center would create 12,000 jobs across the state and reduce foreign oil dependence by 900 million gallons per year.

Gov. Rendell’s energy plan called for a $850 million Energy Independence Fund, funded by a bond issue, although the state legislature passed a $650 million package.
The bill provides $380 million in incentives for research and manufacturing in biofuels and other renewable energies such as wind and solar. $170 million was earmarked for consumer rebates on purchase of energy-saving items such as energy efficient appliances, hybrid cars or solar panels. $100 million would go to emergency aid for poor families for assistance with rising utility bills.

The bond would be paid off with a new energy utility tax.