Biodiesel Blending at PA petroleum terminal- will NC be next?

We need this kind of biodiesel blending capablity at a petroleum terminalin NC to encourage more widespread use and distribution. See press release below from PA.

PA Governor Rendell Leading Efforts to Lessen Nation's Dependence on Foreign Oil
Friday October 28, 10:30 am ET
East Coast's First State-of-the-Art Biofuels Injection Facility will Replace 3.2 Million Gallons of Foreign Oil, Save $6 Million in Imported Fuel Costs

HARRISBURG, Pa., Oct. 28 /PRNewswire/ -- Pennsylvania Governor Edward G. Rendell continued his efforts to help reduce Pennsylvania's dependence on foreign oil today and keep the state at the forefront of promoting alternative energy. The Governor opened the East Coast's first state-of-the-art biofuels injection facility in Middletown, PA, 14 miles southeast of here.
The plant will replace 3.2 million gallons of foreign oil with domestically produced biodiesel. It will also keep about $6 million worth of energy dollars in the commonwealth by reducing the state's need to purchase imported fuels.

"Pennsylvania is changing the way America produces fuel," Governor Rendell said. "This project is a perfect example of how we can make ourselves more secure at home and grow our economies by embracing clean energy sources that are produced right here. The benefits include greater energy independence, a cleaner environment and more jobs for our residents.

"We cannot afford to wait for the federal government to establish a policy that supports our businesses and reduces our dependence on foreign oil. We are acting now to solve our energy problem and keep tens of millions of dollars here that might otherwise go to import foreign oils," Governor Rendell said.

The facility marks a new era in biofuels distribution, supporting one of the best innovations of agriculture, domestic resources and energy efficiency by putting in place the infrastructure needed to make a variety of cleaner- burning, blended, products - from biodiesel to home heating oil - commercially available on a larger scale.

"I am committed to bringing back our energy independence," Governor Rendell said. "In Pennsylvania, we're going to continue supporting innovative ideas that put our citizens to work and help to keep our own energy dollars here."

Governor Rendell made the announcement at Petroleum Products Corp. in Middletown, Dauphin County. The facility - constructed by PPC, the state's largest pipeline terminal - was financed in part by Manheim-based Worley & Obetz with $219,908 from the Pennsylvania Energy Harvest Grant Program. The project is a joint venture of PPC, Worley & Obetz and Independence Biofuels Inc., which will help to accommodate the marketplace's growing demand for the soy-based fuel.

The injection facility enables any company that fuels its vehicles at the terminal to blend diesel fuel, or heating oil, at a variable rate with biofuel, all at the touch of a button. A computer allows customers to pull up to a terminal and dial-in the specific proportion of biodiesel their vehicles require. The product will be seamlessly blended before it reaches the truck.

Injection blending is more exact, efficient and convenient than "splash" blending, when, for example, diesel and biofuel are poured separately into a tanker truck in various proportions and allowed to mix during transport.

Biofuel is a blend of biodiesel with petroleum distillate, such as traditional diesel fuel or home heating oil. Biodiesel is a domestic, renewable fuel derived from refined natural oils like soybean oil and can be used in any concentration and with any petroleum-based distillates with little or no modification to the vehicle or heating system.

Environmental Protection Secretary Kathleen A. McGinty noted that biodiesel blends reduce emissions of particulate matter, sulfur dioxide and air toxics normally found in diesel fuel. In its first operating year, Worley & Obetz's new facility will annually avoid 207,500 pounds of carbon monoxide and 17,845 pounds each of particulate matter and sulfur dioxide emissions.

The economic and environmental benefits of the new technology are many. Pennsylvanians now spend some $30 billion per year on imported energy fuels. However, using and developing homegrown energy sources and supplies, such as soybeans grown by Pennsylvania farmers, local and regional economies will enjoy a "multiplier effect" that can yield significant economic benefits. Because biofuels can be produced from homegrown feedstock, increasing the use of biofuels grown here will support farmers and keep energy dollars in Pennsylvania.

"With energy prices rising, these cleaner, home-grown, fuels are more than cost competitive, they make absolute sense," Governor Rendell said. "Now is the time to invest in projects that use the state's indigenous resources to produce our own fuels, enhance national security and spur economic growth. Biofuels can help us grow our way to greater energy independence."

This project is among a number of initiatives that Governor Rendell has put in place to promote advanced energy projects in the state. The Governor's successful and visionary leadership in building a clean energy future was recognized recently by former President William J. Clinton in the Inaugural Clinton Global Initiative, an international summit.

Governor Rendell has made Pennsylvania a frontrunner in addressing the country's dependence on foreign oil by supporting the nation's first-ever waste-coal-to-diesel plant and creating a fuel consortium that will purchase nearly all of the cheaper, cleaner diesel fuel that will be produced at the Schuylkill County facility. The plant, which is being built by Waste Management and Processors Inc. of Gilberton, Schuylkill County, will use waste coal to produce as much as 40 million gallons of clean-burning diesel annually. Construction of the Mahanoy plant will create as many as 1,000 jobs. Operating the plant will produce another 600 permanent high-paying positions. The company expects to break ground and start construction as early as Spring of 2006.

Nationally syndicated business and financial columnist Lou Dobbs praised Governor Rendell recently on his CNN news program for his national leadership on energy initiatives. Additionally, Barron's, one of the nation's premier financial weekly magazines, and Bloomberg News, highlighted the Governor's leadership in creating the buyers' consortium.

Pennsylvania is now home to one of the nation's most progressive alternative energy portfolio standards, ensuring that 18 percent of all energy generated comes from clean, efficient sources by the year 2020. Pennsylvania is one of two states with a portfolio standard that includes energy efficiency. Benefits include $10 billion in increased output for Pennsylvania, $3 billion in additional earnings and between 3,500 and 4,000 new jobs for residents over the next 20 years.

Governor Rendell's Growing Greener II initiative provides significant resources to build on the success of other energy initiatives, including up to $10 million annually for the newly revitalized Pennsylvania Energy Development Authority. PEDA has up to $1 billion available to provide financing to help build clean power and fuel plants. In June, PEDA awarded its first $6.5 million to finance 16 clean energy projects that promote applied energy research, provide financial incentives for the deployment of clean, alternative energy projects and encourage investment in Pennsylvania's energy sector. These projects will create as many as 450 permanent and construction jobs, including 327 full-time jobs if research projects are successful.

The Pennsylvania Energy Harvest Grant Program funds projects that build markets for advanced and renewable energy technologies that use biomass, wind, solar, small-scale hydroelectric, landfill methane, energy efficiency, coal- bed methane and waste coal. The program has awarded $10 million and leveraged another $26.7 million in private funds since its inception in May 2003.

Governor Rendell also signed an executive order, "Energy Management and Conservation in the Commonwealth," ensuring maximum efficiency in energy management and conservation in state facilities through the implementation of a centralized energy strategy. This measure will decrease energy consumption and energy costs and promote a cleaner environment.

The Governor enacted an expansion of the state's Alternative Fuels Incentive Grant Program, which invests in enhancing the infrastructure necessary to expand the state's capacity to produce alternative fuels. AFIG also helps residents purchase alternative-fuel vehicles and finances related fuel projects to create new markets that can have measurable impacts on pollution reduction, environmental protection and economic growth.

More recently, Governor Rendell announced a plan to replace some 25 percent of the state's vehicle fleet with hybrids by 2011.

For more information on these energy initiatives, visit the state's Web site at http://www.state.pa.us, Keyword: "DEP Alternative Energy." For more information on the Stay Warm PA program visit http://www.staywarmpa.com.

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.

CONTACT: Kate Philips, Pennsylvania Office of the Governor, +1-717-783-1116, or Kurt Knaus, DEP, +1-717-787-1323.




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Source: Pennsylvania Office of the Governor