In Pennsylvania, Alternative Fuels has informed the state Department of Environmental Protection that it would not use a $1 million grant because it would not produce the projected level of 20 Mgy of algae-based biodiesel. The company has struggled to make algae fuel and switched to a waste-oil based feedstock, which allowed the plant to resume production after a November 2007 shutdown. The company said that it would pursue incentives of up to $1.9 million per year for production at the 300,000 gallons per year level.
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