Kentucky makes equity investment in Louisville Clean Fuels for production process capable of simultaneously producing bio-gas, biodiesel, ethanol, and electricity

In Kentucky, the state has awarded $1.2 million from the Kentucky New Energy Ventures fund to seven early-stage Kentucky-based renewable energy companies. Among the recipients is Louisville Clean Energy, which received $250,000 in equity investment that must be matched under state rules by private investors. Louisville Clean Fuels developed a multi-process method of combined-cycle energy generation, a production process capable of simultaneously producing bio-gas, biodiesel, ethanol, and electricity.

Kentucky background

Henderson County has formed a Henderson Energy Advisory Team to develop policies and bring synfuels and biofuel companies to the county.

In October, Alltech announced a 10 Mgy next-generation biofuels plant in Kentucky. The $40 million project received tax benefits up to $8 million under incentives created by Kentucky’s Incentives for Energy Independence Act (IEIA), and is projected to create 93 new jobs. To qualify, a biofuel facility must involve a capital investment of at least $25 million. The incentives can cover labor costs on a new project; sales and use taxes; income tax and corporate taxes. The incentives are funded by a state bond issue. The state also adds tax credits of $1 per gallon for biodiesel and ethanol.

Earlier in the fall, Southland Renewable Fuel announced a 60 Mgy biodiesel plant in Paducah. Construction over three years is projected to cost $100 million.

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