Keystone BioFuels Paves Way for Evolving Fuel industry

Monica Von Dobeneck (The Patriot-News /PennLive.c0m) Ben Wooten is doubling his workforce, quadrupling his space and increasing his production tenfold at his Keystone BioFuels in Lower Allen Twp. Not bad in a stagnant economy, he said. Wooten said government policy is helping to fuel his growth.

Keystone produces biodiesel, a replacement for petroleum-based diesel that uses soybean oil, used cooking oil, animal fats and a number of other sources in its production. It’s renewable, cleaner than petroleum, comparable in price and can help wean the country from foreign oil, Wooten said.

...“We’re a young industry, and we wouldn’t be where we are today without the tax incentive — and a lot more people would be standing in the unemployment line.”

Keystone BioFuels moved from Shiremanstown to the former Appleton Paper building in Lower Allen Twp. in January and has been gearing up for increased production since.

It is set to restart production in early September and plans to hire 14 more people to double its workforce. Its new location also is next to a railroad siding that will help it get its product out faster.

...Production dropped from 700 million gallons in 2008 to 315 million gallons in 2010, according to Kaleb Little, communications specialist for the National Biodiesel Board. In 2011, with incentives restored in a bipartisan effort, the industry is on target to produce a record 800 million gallons and has surpassed 2010’s production. According to Little, that production will support more than 31,000 U.S. jobs and generate income of nearly $1.7 billion.

The new numbers “demonstrate the power that strong domestic policy can have in helping create jobs and economic activity,” Little said.

... Since May 2010, the state has required every gallon of diesel fuel to contain at least two percent biodiesel. Once production exceeds 100 million gallons, that percentage will increase to five percent, according to state Department of Environmental Protection spokesman Kevin Sunday.

“It’s a much cleaner burning fuel, and we certainly encourage the adoption of such technologies,” Sunday said. “We have the potential for this to be a homegrown industry.”

...(B)ut to be fair, tax breaks for the petroleum industry should also expire. The petroleum industry “has had tax incentives and subsidies for about 100 years now,” he (Little) said.

Wooten said the government should spend money on research, such as finding more efficient ways to develop fuels from algae, instead of subsidies.

Even though Keystone BioFuels has been profitable for the last three years and has good prospects, Wooten said he was unable to get a bank loan to expand his business and had to go to private investors. READ MORE and MORE (Biodiesel Magazine)