Indian Orchard Energy proposes 60 Mgy corn ethanol plant in Pennsylvania

In Pennsylvania, Indian Orchard Energy is planning a 60 Mgy corn ethanol plant in Texas Township, and is raising up to $160 million from investors and lenders to fund the project. More than $100,000 was raised towards land purchase deposits of $800,000 last week via tours of the proposed 91-acre site.

The confidence of the Indian Orchard project stands in contrast to the increasing gloom over the Keystone Ethanol project in Crawford County. 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.
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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