New York State Governor George Pataki has announced a major initiative to increase the production of biofuels as part of a comprehensive plan to develop and expand markets for ethanol and biodiesel.
“By developing a strong biofuel industry in the State, we can break free from our dependency on foreign fuels, provide an economic boost to our farming community, and keep energy dollars here in New York,” Pataki said.
Biofuel producers will receive incentives from the New York State Energy Research and Development Authority to promote the construction of bio-refineries in New York State under a $US500,000 program.
Applicants will be eligible for grants of up to $US100,000 for the planning, design and construction of biofuel refining facilities, as well as other qualifying costs associated with construction and operations.
The incentives are designed to attract potential investors and increase local supplies of biofuels.
Governor Pataki has ensured that new biofuel producers will have a degree of certainty in the sale of their biofuel products with the issue of an Executive Order requiring all State agencies and public authorities to increase their purchase and use of biofuels for heating their facilities and fueling their vehicles.
The proposal is expected to provide a boost to farmers in New York State who will see an increased market for feedstocks used in biofuel production.
Under the Executive Order, state agencies and public authorities will be required to purchase and use biofuels for use in boilers, heating/cooling plants, with the aim of using 5% biofuel by 2012.
In addition, at least 2% of fuels used in the State fleet must be biofuels by 2007, with this percentage rising to 10% in 2012.
The Governor’s Clean Fueled Vehicle Council also will develop and implement plans to increase the number and accessibility of ethanol refueling stations.
“The Empire State is a national leader in the promoting the use of renewable fuels, but we must continue to work to increase our use of alternative energy sources and strengthen our economy,” Pataki said.
New York State Energy Research and Development Authority president Peter Smith said Governor Pataki had made an important step in ensuring New York’s energy independence.
“NYSERDA has been working with several partners here in New York on programs from crop growth to fueling infrastructure, and we are excited about this new initiative, which will provide expanded markets and create economic investment in the biofuel industry,” Smith said.
Governor Pataki has also directed the State Department of Agriculture and Markets to work with farmers to identify the best locations to grow soybeans and other biofuel feedstock crops.
Soybeans, switch grass and willow have been identified as feedstock crops that can be grown competitively in the state that are suitable for biofuel production.
"There's as much as two million acres of underutilised farmland in New York State that could be put into productive use growing energy crops, creating markets for our farmers, supporting jobs and rural economic development, and replacing imported petroleum with home-grown fuels and products," said State Agriculture Commissioner Nathan Rudgers.
Up to three ethanol plants are expected to begin production in New York State within the next year, including Northeast Biofuels in Fulton, Oswego County.
The Northeast Biofuels plant would be the largest ethanol plant in the region, with a 100 million gallon annual capacity.
The Fulton biofuel site also will be home to a 5 million gallons/year biodiesel production facility built and operated by NextGen Fuel.
