West Virginia Development Authority gives preliminary OK to $5 million loan to Kanawha Biodiesel

In West Virginia, the state Development Authority gave preliminary approval to a $5 million loan to Kanawha Biodiesel for its plant in Institute. The company has licensed a proprietary biodiesel production process from its parent company, Emerald BioFuels.

West Virginia had been more noted in alternative energy circles in recent months for a controversial support of coal-to-liquid fuel conversion. West Virginia had announced a policy of replacing 40 percent of the state’s oil consumption by 2030 with liquid fuel made from coal, and Gov. Manchin recently proposed the construction of 10 liquid coal plants in the state.

A report from the Union of Concerned Scientists said that converting coal into liquid fuel will worsen climate change problems, and recommended more focus on next-generation biofuels. The report said that liquid coal can increase greenhouse gas emissions by more than 80 percent, compared to gasoline.

“Biofuels have a Jekyll-and-Hyde reputation depending on what study you read and what assumptions you make, but liquid coal is a loser no matter how you look at it,” said Patricia Monahan, author of the report.

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