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Pennsylvania Governor Rendell Announces $6.4 Million for Clean Energy Projects

Posted on: Thursday, 5 October 2006, 15:00 CDT

HARRISBURG, Pa., Oct. 5 /PRNewswire/ -- Governor Edward G. Rendell today announced Pennsylvania is investing $6.4 million in 16 clean energy projects that will create 316 permanent and up to 280 construction jobs in the commonwealth, as well as to leverage more than $38 million in private funds.

"Pennsylvania is making strategic investments to stimulate the growth of clean energy technologies that can power our future without leaving us in the grip of foreign governments or choking on harmful emissions," Governor Rendell said. "By partnering with Pennsylvania companies that are advancing solar power, biofuels and other forms of renewable energy, as well as building clean fossil technologies, we are creating opportunities to put Pennsylvanians to work now and for years to come."

Energy output from the projects, which were approved by the Pennsylvania Energy Development Authority, will generate an estimated 15,710-megawatt hours of electricity, enough to power about 1,600 Pennsylvania homes, and produce the equivalent of enough natural gas to supply almost 2,500 homes for a year. Another 208,000 million British thermal units (Btu) will be conserved. The projects also have the potential to produce 115-million gallons of biofuel.

The 16 projects will receive grants for a variety of clean fuels and green power projects using sources such as solar, fuel cells, biofuels, landfill gas, wind and biomass. The funding also will boost Pennsylvania businesses by putting alternative energy technologies to work for them, bolster public infrastructure and support additional income streams for Pennsylvania farmers.

This funding represents the third round of awards by PEDA, which Governor Rendell revitalized after years of inactivity as part of his strategy to build a clean, indigenous, diversified energy industry in Pennsylvania.

PEDA has awarded $21 million in grants and loans for 57 clean energy projects that will leverage another $240 million in private investment since 2005. The projects will create 975 permanent and construction jobs.

The 16 PEDA projects were evaluated on a variety of criteria, including their ability to promote Pennsylvania's indigenous energy resources, encourage energy diversity, enhance energy security and improve the environment. The projects were judged on their potential to create jobs and stimulate investment in the state. Technical feasibility and cost-effectiveness also were considered.

This third round of PEDA financing priorities included solar, distributed energy generation for critical public infrastructure and clean, alternative fuels for transportation and other technologies.

Five of the projects include solar power, with a total public-private investment of almost $3.8 million. Two of the projects will spread solar power generation to sites across the commonwealth, raising the awareness of renewable energy and demonstrating the viability of power aggregated from multiple, small-scale sites.

"Governor Rendell's leadership is giving Pennsylvania a competitive edge in the manufacturing of cutting-edge, clean-energy technologies," said Environmental Protection Secretary Kathleen A. McGinty, who serves as PEDA chairwoman. "These new industries are investing in Pennsylvania and creating jobs here, not overseas. The advancements we are supporting will ensure our existing industries have reliable sources of clean, affordable energy so they can compete in today's global markets."

Governor Rendell has pursued a broad array of policies and financial tools in place to promote advanced energy projects in the commonwealth. Pennsylvania's Alternative Energy Portfolio Standard, one of the most progressive in the nation, ensures that 18 percent of all retail energy generated by 2020 comes from clean, efficient and advanced resources.

The law promises to substantially build on the state's leadership in wind production east of the Mississippi, with wind sources providing enough clean energy to power some 70,000 homes. Because of that leadership, Governor Rendell was able to lead a campaign to land the Spanish wind-energy company Gamesa Corp., the second largest wind energy company in the world. With its U.S. headquarters in Philadelphia and manufacturing facilities in Bucks and Cambria counties, Gamesa represents an $84 million investment in the state that will create as many as 1,000 jobs.

The state's clean energy law also far surpasses other states in ensuring wide distribution and use of zero-pollution solar power. By 2021, when the solar share is in full effect, utilities will be required to purchase 700 megawatts of solar-produced electricity -- the second largest solar requirement in the nation.

The commonwealth is leading in other areas of advanced energy development, creating jobs and cleaning up the environment while putting indigenous resources to work.

The Governor recently redoubled the commonwealth's "green" electricity commitment to 20 percent, making Pennsylvania the largest state purchaser of green electricity in the nation. Pennsylvania also is second only to California in the number of buildings certified by the U.S. Green Building Council under the internationally recognized Leadership in Energy and Environmental Design program.

Governor Rendell's "PennSecurity Fuels Initiative" will produce and use 900-million gallons annually of clean, domestic fuel --- an amount equivalent to what the state is expected to import from the Persian Gulf 10 years from now. The Governor is investing $30 million over the next five years to build re-fueling and production infrastructure to support wide distribution of the alternative fuels.

Pennsylvania very well could be the nation's leading producer of biodiesel within the year, going from practically nowhere a year ago to a projected 40-million gallons of annual production. The state also contains enough plant matter to produce in excess of 500 million gallons of cellulosic ethanol per year.

The nation's first coal gasification-liquefaction plant is set to be built in northeastern Pennsylvania. The facility will use waste coal to produce 40-million gallons of clean-burning diesel fuel each year. What the Governor is doing to support the project is unprecedented, creating a fuel consortium with private industry to purchase nearly all of the offtake well below current market values.

Instead of spending overseas, Governor Rendell is investing at home and putting Pennsylvanians to work. The Pennsylvania Energy Harvest Grant Program has awarded $15.9 million and leveraged another $43.7 million in private funds since its inception in May 2003 for projects using sources such as wind, solar, biomass, waste coal and recycled energy.

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.

EDITOR'S NOTE: Following is a list by county of the $6.4 million in grants awarded through PEDA for 16 clean energy projects.

ALLEGHENY

HydroGen LLC - $250,000 to install a two-megawatt fuel cell at U.S. Steel's Mon Valley facility, fueling it using surplus hydrogen-rich gas from coke oven operations.

Middle Road Volunteer Fire Department - $51,388 for a 3.2-kilowatt solar power generation system to provide supplemental power and battery backup power to essential functions. Any power exceeding the demand for the battery recharging will be net metered through a power purchase agreement.

CAMBRIA

Glendale Yearound Water Co. - $150,059 for wind and solar power generators to serve as a backup power system for the community water supplier and wastewater treatment plant, and to cut demand for electricity. The alternative power sources could also power an emergency shelter.

Kuchera Defense Systems Inc. - $391,548 to establish a Center for Excellence for Advanced Energy Systems Manufacturing, focusing on fuel cell manufacturing.

CLARION

Clarion Boards Inc. - $100,000 for a BioFilter system to replace a thermal regenerative oxidizer. The replacement will continue to destruct volatile organic compounds produced by the plant and will eliminate the use of fossil fuels. It will reduce air pollutants, reduce operational costs and promote an alternative, cleaner method of air quality control.

CLEARFIELD

BioEnergy International LLC - $1 million to construct rail facilities for a $180 million ethanol plant with a capacity of 108-million gallons per year.

COLUMBIA

Benton Area School District - $350,000 for a biomass-fired boiler heating system. The flexible-fuel system would replace 37,000 gallons of heating oil a year and use local biomass materials such as native grass pellets, wood pellets and corn to provide 80 percent of the district's heating needs. In addition to reducing the district's heating costs, the project will provide incomes to local farmers producing the biomass.

CUMBERLAND

Keystone BioFuels Inc. - $500,000 to expand current biodiesel production capacity from 1 million to 7 million gallons per year.

ELK

Elk Regional Health Center Inc. - $500,000 to install and implement a biomass heating and cooling system that uses wood by-products from nearby state and federal forested lands as fuel. The system would reduce landfilling costs, cut natural gas use by 23 percent and promote the local economy.

GREENE

Southwestern Pennsylvania Water Authority - $299,000 for a 25-kilowatt wind turbine-generator to power pumps on an existing water line; this will also provide a necessary pressure reduction for the line.

LEHIGH

Allentown - $517,045 to install first phase of a solar photovoltaic array at the city's Bridgeworks facility, a brownfield industrial reuse building. The ultimate goal is to utilize an area of 105,050 square feet, with an estimated annual generation of 1,433-megawatt hours of electricity.

PHILADELPHIA

Philadelphia Water Department - $500,000 to install a system to purify biomethane gas generated from sludge.

POTTER

PA Pellets LLC - $325,000 for equipment to make wood pellets from indigenous resources including sawdust and forest thinning by-products. The pellets fuel heating stoves.

SOMERSET

Johnstown Regional Energy LLC - $250,000 to construct landfill gas projects at Southern Alleghenies and Shade Landfills. The projects will generate more than 3,000 MM/Btus per day initially and up to 5,000 MM/Btus per day by year 10. The gas will be transported via new pipelines from the facilities to Dominion People's commercial pipeline.

MULTI-COUNTY PROJECTS

TRF Sustainable Development Fund - $701,366 for 46 solar photovoltaic systems on buildings in southeast Pennsylvania. The program would provide 206,119-kilowatt hours per year, while displacing 254,371 pounds carbon dioxide, 1,961 pounds sulfur dioxide and 559 pounds nitrogen oxide.

Mesa Environmental Sciences Inc. - $491,741 to install solar photovoltaic systems, totaling 120 kilowatts, on 21 farms. The purpose of this distribution is to spread solar technology, raise awareness of renewable energy and demonstrate the viability of aggregation.

CONTACT: Kate Philips 717-783-1116 Charlie Young, DEP 717-787-1323

Pennsylvania Office of the Governor

CONTACT: Kate Philips, Pennsylvania Office of the Governor,+1-717-783-1116; Charlie Young, Pennsylvania Department of EnvironmentalProtection; +1-717-787-1323

Web site: http://www.governor.state.pa.us/http://www.depweb.state.pa.us/

Source: PRNewswire

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