Keystone Ethanol refuses to release feasibility study

In Pennsylvania, Keystone Ethanol Energy Producers is not releasing results of a feasibility study completed by a company consultant on the prospects for the proposed 25 to 40 Mgy corn ethanol plant. A 2006 Crawford County Farm Bureau study had concluded that the project was not commercially viable, prompting Keystone to retain a consultancy to review the County’s findings. The company has indicated that it believes that the 2006 study is out of date because of changes in feedstock and fuel prices, and added that may reduce the plant’s capacity to acquire more feedstock from a smaller radius around the plant to ensure supply.

Pennsylvania has in recent months been targeting the expansion of its biofuels industry. In recent months, a proposal has been introduced for a biomass conversion center in Clearfield that would provide job training and other service to up to 10 biofuels plants around the state, and would include a 30 Mgy ethanol plant at the Clearfield complex. A sponsor of the proposal, state Rep. Camille “Bud” George, said the center would create 12,000 jobs across the state and reduce foreign oil dependence by 900 million gallons per year.

Gov. Rendell’s energy plan called for a $850 million Energy Independence Fund, funded by a bond issue, although the state legislature passed a $650 million package.
The bill provides $380 million in incentives for research and manufacturing in biofuels and other renewable energies such as wind and solar. $170 million was earmarked for consumer rebates on purchase of energy-saving items such as energy efficient appliances, hybrid cars or solar panels. $100 million would go to emergency aid for poor families for assistance with rising utility bills.

The bond would be paid off with a new energy utility tax.

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