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Biodiesel producers hit benchmarks, 2 percent blend coming

By - Last modified: February 14, 2011 at 12:05 PM

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Biodiesel production in Pennsylvania has hit the first threshold to mandate blending the green fuel with all petroleum diesel sold in the state, Gov. Ed Rendell and biodiesel producers announced today at the Farm Show in Harrisburg.

Biodiesel production in Pennsylvania has hit the first threshold to mandate blending the green fuel with all petroleum diesel sold in the state, Gov. Ed Rendell and biodiesel producers announced today at the Farm Show in Harrisburg.


Biodiesel makers, including several companies in Central Pennsylvania, have produced 40 million gallons a year, said Ben Wootton, president of Keystone BioFuels Inc., based in Hampden Township, Cumberland County.


Wootton also is the chairman of the Pennsylvania Biodiesel Producers Group, a trade organization representing biodiesel manufacturers.


All diesel sold in Pennsylvania in the future will have to contain at least 2 percent biodiesel. The mandate is part of legislation passed in July to support the state's biodiesel industry and reduce dependence on foreign oil sources. Biodiesel producers also received a production incentive of 75 cents per gallon, with a cap at $16 million over three years. The incentive is set to expire in 2011.


By early 2010, blending should reach full steam for the first mandate, according to the state. Future mandates include a 5 percent blend when biodiesel production reaches 100 million gallons per year, 10 percent at 200 million gallons and 20 percent at 400 million gallons.

Write to the Editorial Department at editorial@cpbj.com

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