Two PA firms receive grants and loans to build wood pellet plants

Keystone Pellet Inc and Tri State Biofuels LLC will receive over $2 million in grants & loans

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Governor Edward G. Rendell today announced new state investments that will help keep Pennsylvania at the forefront of the new green economy while creating jobs, spurring private economic development, and supporting local school districts that are struggling with energy costs.

The Governor said the Commonwealth Financing Authority approved nearly $18.4 million for 31 projects throughout the state. The investments were made possible through the $650 million Alternative Energy Investment Fund, which he signed in July 2008.

"These new resources are critically important from an economic development and job-creating perspective and also for families and small businesses struggling to cope with energy prices," said Governor Rendell. "These investments will support energy conservation and efficiency, help a number of school districts save precious tax dollars on their energy bills, and spur new private investment from alternative energy companies that create jobs in a rapidly growing economic sector."

The CFA approved the following projects under the Alternative and Clean Energy program:

Carbon County

Keystone Pellet Inc., a start-up renewable energy producer, will receive $770,000 loan and a $220,000 grant for new equipment and to construct a wood pellet manufacturing operation in a blighted light-industrial building in Palmerton, Lower Towamensing Township. Keystone Pellet expects to manufacture 35,000 tons per year of hardwood pellets for use in home heating. The company anticipates creating 22 new jobs with this project. The capital invested will generate 35,000 tons of alternative fuel that will replace 4 million gallons of heating oil per year and prevent more than 33 million pounds of carbon dioxide emissions. Keystone Pellet will invest $2.5 million in matching funds for the $4.9 million project.

Fayette County

Tri State Biofuels LLC will receive a $716,500 loan and a $360,000 grant to construct a factory to produce wood pellets on a 140-acre brownfield site in North Union Township. This facility will produce 65,000 to 78,000 tons of wood pellets per year, reducing the use of heating oil. The project is anticipated to create 36 jobs. The funds will be used to purchase and install equipment and for site preparation. The total cost of the clean energy project is $2.5 million. Tri State Biofuels will provide $1.2 million in matching funds.

Additional Information

Web Site: http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/09-11-2009/0005092311&EDATE=

Category: Forestry>Wood Pellets

Region: Pennsylvania

Ad Running: 9/12/2009-10/12/2011

Ad Posted: 9/12/2009 11:42:10 AM

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