Governor Rendell Announces Support for Innovative Alternative Energy Projects; Urges Additional Funding to Keep PA Competitive; PA Energy Development

HARRISBURG, Pa., Oct. 15 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today announced the investment of more than $11 million in 24 innovative, alternative and renewable energy projects that are designed to attract nearly $122 million in new, private economic growth; create more than 730 permanent jobs and 1,200 temporary positions.

The Governor said Pennsylvania needs to provide this support if it is to remain competitive in the alternative and renewable energy industries and strengthen its energy independence and economy.

"The 24 projects we're announcing today are helping to keep Pennsylvania as the leader in the 'new energy economy'," said Governor Rendell. "Three weeks ago, I urged the General Assembly to clear the way for Pennsylvania to invest in its future and establish itself as the leader in these growing industries.

"We're among the top destinations for cutting edge projects in areas like solar and wind energy technologies but other states and other nations are stepping up to compete with us," he said. "California has made more than $3 billion available for solar development and Iowa is investing $1.3 billion in mostly biofuels production. Even smaller and less populated states like Rhode Island and Wyoming have made $300 million and $400 million available for alternative energy development."

The Governor said investors injected $71 billion last year into the renewable energy sector, up 43 percent from 2005. Meanwhile, another $85 billion in investment capital is expected to reach the market this year. Pennsylvania, he said, is only able to support approximately 10 percent of the requests it receives for economic development funding, which means the commonwealth is missing out on at least $100 million in new investments each year.

"Our commitments to this rapidly growing industry and our strategic investments have established the commonwealth as a destination location for groundbreaking projects in wind, solar, coal gasification and biofuels production," said Governor Rendell.

"For far too long, Pennsylvania has been held back because so much of its economy was in industries that were shrinking. Now we are well positioned to compete with other states and other nations for more of these projects and that position will only increase with the Energy Independence Strategy we have proposed. We should jump at this chance."

The 24 projects announced today were approved by the Pennsylvania Energy Development Authority and involve biofuel production, carbon sequestration, green building technologies, and energy efficiency projects. The commonwealth plans to announce additional investments through the alternative fuels incentive grant program later this week; energy harvest grants will be announced in the near future.

"With rising energy costs, uncertain supplies and political upheavals around the world, investing in home grown energy solutions is in America's best interest," said Governor Rendell. "Rather than relying on foreign nations for our energy, which makes us economically vulnerable, we're investing in ourselves -- our companies, communities and people."

Beyond the economic opportunities created through these projects, the Governor said Pennsylvania's environment would benefit, as well. Combined, the projects will eliminate 2.7 million tons of carbon dioxide annually, reduce emissions of smog-producing pollutants like sulfur dioxide by more than 15,000 tons, and nitrogen oxide by 4,300 tons.

Additionally, some of the projects approved today will help meet the state's electricity needs, generating 3.2 billion kilowatt hours (kWh) of electricity annually -- enough to power 320,000 homes.

To solidify Pennsylvania's position as a leading destination state for development in the alternative and renewable energy industries, the Governor urged action on the Energy Independence Strategy he unveiled in February.

Designed to save consumers $10 billion over the next decade, the initiative leverages $850 million in new state resources to attract $3.5 billion in new private investments and create 13,000 jobs. Additionally, the strategy will spark development in Pennsylvania's alternative and renewable energy industries and reduce the state's dependence on foreign oil by requiring nearly a billion gallons of biofuels be produced and consumed in the commonwealth.

Since enacting the Governor's Alternative Energy Portfolio Standards Act in 2004, Pennsylvania has become a leading destination for alternative and renewable energy projects. These projects have attracted $1 billion in new investments and nearly 3,000 new jobs. The law requires that 18 percent of all energy generated and sold in the state comes from alternative and renewable sources by 2021.

Governor Rendell revived PEDA after years of inactivity to help spark innovation and economic development in Pennsylvania's energy industry. Since 2004, it has directed $32.2 million in grants and loans for 81 clean energy projects that are leveraging another $362 million in private investment.

Applicants for PEDA financing can seek grant assistance for capital costs for a variety of innovative, advanced energy projects. Eligible PEDA projects may include solar energy; wind; low-impact hydropower; geothermal; biologically derived methane gas, including landfill gas; biomass; fuel cells; coal-mine methane; waste coal; integrated gasification combined cycle; demand management measures, including recycled energy and energy recovery, energy efficiency and load management; and clean, alternative fuels for transportation. PEDA particularly encourages applicants with projects related to distributed generation for critical public infrastructure to apply.

PEDA financing is available to organizations operating in Pennsylvania and to those businesses interested in locating advanced energy operations in the state.

For more information, visit http://www.depweb.state.pa.us/ , keyword: PEDA. For more information on the Energy Independence Strategy, visit the same Web site and click on the "Fueling Energy Savings" icon.

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: The following is a listing by county of the $11.2 million of Pennsylvania Energy Development Authority grants announced today.

ADAMS COUNTY

Energy Works North America LLC -- $410,250 for poultry litter-gasification project. The project will produce on 3.5 million kWh annually and reduce nutrient runoff.

ALLEGHENY COUNTY

HydroGen LLC -- $500,000 for design and installation of modules to clean hydrogen-rich gas from U.S. Steel's coke oven operations in the Mon Valley Works plant. The cleaned gas will be used in a demonstration project that could lead to a commercial-scale fuel cell power plant.

Phipps Conservatory and Pittsburgh Botanical Gardens Inc. -- $250,000 to support construction of a zero-net-energy education/research/administration center utilizing anaerobic digesters, solar and on-site wind energy technologies. The center will annually offset 443,124 pounds of carbon dioxide, create 23 permanent jobs and hundreds of indirect jobs.

PFBC Environmental Energy South Park Technology Inc. in partnership with CONSOL Energy, Inc. and Sargas AS -- $600,000 to develop the pressurized, fluidized-bed combined cycle technology to use wet waste coal for efficient power generation with reduced carbon dioxide emissions. PFBC expects to generate 2.8 million kWh of electricity annually and reduce carbon dioxide emissions by more than 2.6 million tons. The project will result in 1,000 construction jobs over three years and 150 permanent staff.

Carnegie Mellon University -- $80,000 to partially fund a prototype hybrid ventilation/automated window opening system. The system will reduce energy use by at least 10 percent.

Walnut Capital Acquisitions Inc. --$400,000 to install a 100 kW solar system. Demonstrates viability of third-party ownership of commercial solar projects for distributed generation in redevelopment of old industrial properties.

BUCKS COUNTY

AE Polysilicon Corp. -- $1 million for equipment to produce polysilicon for use in solar cells. The project, based in a redeveloped brownfield, has the potential to significantly bring down the cost of polysilicon and solar energy. It will create 145 jobs and more than 30 contract/construction jobs.

CARBON COUNTY

Borough of Lehighton -- $750,000 to build a powerhouse with two hydroelectric turbines and generators at Beltzville Dam. The unit would produce almost 9.5 million kWh of electricity. The project would offset 9,600 tons of carbon dioxide annually.

CENTRE COUNTY

Pennsylvania State University -- $560,000 for development of a residential-scale wind, geothermal energy and hydrogen fueling systems to complement an 8.7 kW solar electric and solar thermal system at PSU's Net-Zero Energy MorningStar Home research and educational facility. PSU estimates that the total system will produce 13,400 kWh annually and reduce annual air emissions by more than 14 tons of carbon dioxide.

CHESTER COUNTY

Southeastern Chester County Refuse Authority -- $250,000 for a second landfill-gas-to-electricity generator at the London Grove Township landfill. This second phase project will generate 8.8 million kWh per year and it will reduce emissions of carbon dioxide by 6,000 tons and methane by 2,100 tons annually. The authority has an existing agreement to sell the energy directly to the power grid.

DAUPHIN COUNTY

NRG Energy Center Paxton LLC -- $112,000 for a project to verify engine performance and emissions under varying blends of biodiesel fuel at their cogeneration facility. The results of the project will be used to implement the use of biodiesel at stationary diesel engine electric generation and cogeneration facility.

GREENE COUNTY

Separation Design Group LLC -- $112,852 for an innovative heat exchange device that combines solar-thermal energy with geothermal potential to provide year-round heating, cooling and electricity generation as part of "recycling" of the former Greene County nursing home constructed in 1930. The project will generate 52,875 kWh of electricity and create five jobs.

NORTHUMBERLAND

Boyd Station LLC -- $750,000 for expansion of a soybean processing facility that will increase production to 3 million gallons/year of locally produced soybean oil for biodiesel manufacturing, reducing transportation costs. The expansion will create six jobs.

PHILADELPHIA

Friends Center Corp. -- $505,540 for a 1,500-foot-deep geothermal exchange well for heating and cooling to a two-building renovation project. By using an existing solar system and purchasing wind energy, the project will reduce energy consumption by 46 percent and reduce carbon dioxide emissions by 427,857 pounds. The project introduces a more effective procedure for geothermal well development in an urban setting and will educate building professionals in urban geothermal design.

Stable Flats LLC -- $700,000 for a 235.4 kW solar photovoltaic system in the first multi-family LEED (Leadership in Energy & Environmental Design) Gold certified structure in the country. More than 30 percent of the urban community will be affordable housing. The solar system will generate 258,940 kWh per year, reducing power plant emissions by 54,810 pounds of carbon dioxide. The community will create 12 permanent jobs.

SCHUYLKILL COUNTY

Stonegate Renewable Energy L.P. -- $500,000 for a 12.3 MW landfill gas-to-electricity facility at the Commonwealth Environmental Services landfill. The project will produce over 88,000,000 kWh of electricity per year, while reducing emissions of carbon dioxide more than 48,000 tons. Upon completion, the project will be the largest landfill gas-fired power plant in Pennsylvania.

Wind Tower Systems LLC -- $600,000 for the engineering and testing of a lift system for the easier placement of larger wind turbines. The lift system could reduce siting costs by 25 percent and transportation costs by 75 percent, increasing wind energy's cost effectiveness. The project is also expected to create a minimum of eight jobs and reduce carbon dioxide emissions by 1,600 tons.

Aurora Photovoltaics Manufacturing LLC -- $1 million to locate an amorphous silicon thin-film photovoltaic module manufacturing facility with a nominal annual capacity of 50 MW.

Applied Reclamation Techniques LLC -- $400,000 for a 25-million-gallon soy oil degumming system, to be part of a larger planned facility.

SOMERSET COUNTY

Kuchera Defense Systems Inc. -- $600,000 for Phase 2 of a 3-phase plan to establish a "Center of Excellence" for Advanced Energy Systems Manufacturing. The center will manufacture fuel cell components and train employees. Phase 2 will increase the manufacturing and training capabilities and infrastructure of the center.

UNION COUNTY

SEDA-Council of Governments -- $442,234 for a LEED (Leadership in Energy & Environmental Design) Gold green building features, including a solar photovoltaic system, geothermal, insulation, windows, and solar water heating system. The project is expected to reduce pollution by 266 tons of carbon dioxide emissions from power plants.

MULTIPLE COUNTIES

SunTechnics Energy Systems -- $300,000 for the largest solar photovoltaic arrays on the East Coast. Combined, the sites will produce 3.9 million kWh per year for the regional power grid. The applicant reserves the right to choose sites and currently plans 1.5 MW capacity site at a former landfill in Bucks County and another 1.5 MW site in Philadelphia. The projects are expected to annually reduce carbon dioxide emissions by 5.2 million pounds compared to traditional generation, and will create 60 jobs.

The Rodale Institute -- $208,374 to develop a mobile Near IR Spectroscopy lab for processing soil organic and carbon samples. A mobile, accurate testing unit would enable farmers to obtaining carbon credits for carbon sequestration, increasing the likelihood of practices that reduce greenhouse gases.

Ellwood City Borough -- $168,750 to replace 289 existing street lamps with high-efficiency LED lighting. The borough will save 184,043 kWh, reducing 95 tons carbon dioxide emissions from power plants. The project will also include development of a city energy management plan and mailing of energy efficiency educational brochures to residents.