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U.S.
Energy Inc. is about to begin construction on an $87 million biodiesel
plant in Tuscaloosa County. Tax abatements for the alternative fuels
plant were approved by the Tuscaloosa County Industrial Development
Authority.
The
Tuscaloosa News reported that construction on the plant, which is
being located in Cottondale, is expected to begin in January with
production set to start in May.
Gov.
Bob Riley has proposed state tax incentives to encourage commercial
development and private use of alternative fuels. The governor’s
"Alabama Farms and Fuels Act" provides for tax incentives to
help fueling stations as well as conversion of existing gas station
pumps to offer biofuels.
The
biggest biodiesel smiles these days are emanating from Monroe County
where Riley announced plans for a $15 million biodiesel refinery.
Estimates indicate the plant could produce between 20 and 40 million
gallons annually.
The
facility is being built by Parsons & Whittemore (P&W), a
privately held, New York-based company. P&W also owns and operates
the Alabama River Pulp and Alabama Pine Pulp mills.
Construction
began almost immediately after the announcement and the facility is
expected to be operational during the first quarter of this year.
Alabama
River Pulp spokeswoman Peggy Jaye said the Monroe County facility, which
is being built in Claiborne, will produce biodiesel fuels for local
distributors and blenders and then mixed with petroleum to make
different grades.
Jaye
said the new plant will rely, in part, on soybean oil. She also said the
design of the plant will be flexible enough to use alternate feedstocks.
"High
oil prices driven by strong global demand for petroleum and the national
fervor for independence from foreign petroleum are providing the impetus
for alternative fuel development," Jaye said.
She
also noted that biodiesel products are "eco-friendly" and can
reduce greenhouse gas and toxic emissions linked with petroleum diesel.
P&W’s
decision to build the biodiesel refinery has received national attention
and honors. Chairman George Landegger recently received a citation at
the Clinton Global Initiative Conference in New York.
At
the plant announcement with Riley, Landegger made it clear that his
company is doing all it can to reduce greenhouse gasses "which have
led to global warming."
"It
seems hard to believe that here in rural Alabama we can make a
difference in global warming," said Landegger. "But the same
is true in Wisconsin and California. Most states have now developed
initiatives to encourage the production of biodiesel and/or
ethanol."
He
said those initiatives often take the form of reduced excise taxes on
their use as well as mandates that increasing percentages must be
included in their diesel or gasoline mix.
"In
the case of biodiesel, we are blessed that blending it with regular
diesel results in smoother engine operation with no loss of power,"
Landegger said.
In
early December, Perihelion Global announced plans to build a $40 million
bio-fuel refinery at Opp’s industrial park. The facility is expected
to employ 150 workers who will receive an average salary of $17 an hour.
The company said it plans to convert virgin oil feedstock such as
peanuts and soybeans to usable fuel once the plant is operational.
A
few days later, Auburn University professor David Bransby said Alabama
could become the "Saudi Arabia of biofuels" by using such
natural resources as wood and switchgrass for conversion to fuel.
"If done correctly, bioenergy can revolutionize agriculture in
Alabama," Bransby told new legislators at their orientation session
at the University of Alabama.
Alabama
Commissioner of Agriculture Ron Sparks is solidly behind efforts to
build biodiesel facilities in the state. He said they could not only
sustain agricultural operations in existence, but pave the way for even
greater gains.
Sparks
said the state has an abundance of natural resources and products that
can be earmarked for a variety of energy uses, including peanuts,
chicken litter, cottonseed, wood and soybeans.
"We
produce a billion chickens a year in Alabama," he said. "Using
the litter from them is something I’ve been mentioning for a long
time."
Last
month, Sparks took an additional step toward fuel self-sufficiency in
Alabama by announcing the creation of an alternative fuels center.
He
said the Center for Alternative Fuels, which will be located at the
Richard Beard Building in Montgomery, will play an important role
in developing homegrown fuel from agricultural products that can be
blended with petroleum.
"Hardly
a week goes by that we don’t get calls to provide guidance to
interested parties on how to build biodiesel or ethanol plants or where
to purchase alternative fuels," Sparks said.
The
commissioner said changing agricultural times have arrived with a thud
in Alabama and across the country.
"Alternative
fuel is the biggest opportunity agriculture will have in our
lifetime," he said. "It used to be food and fiber before. Now,
it’s going to be food, fiber and fuel. This is an opportunity we don’t
need to fumble."
Sparks
named one of his top aides, Glen Zorn, to direct the new division which
will serve as a "one-stop" shopping center, of sorts, to help
farmers with questions about alternative fuel sources.
On
the national level, several of Riley’s gubernatorial colleagues have
announced state energy initiatives that will likely increase biodiesel
availability and use. Incentives, grants and tax credits are designed to
help biodiesel enhance local economies while reducing pollution at the
same time.
The
National Biodiesel Board (NBB) tracked more than 275 pieces of biodiesel
legislation during 2006 sessions. Of those bills introduced, 53 of them
were approved; prompting the NBB to announce that state legislation
aimed at increasing biodiesel production is at an all-time high.
"When
it comes to alternative energy proposals, there is an increasing
momentum in statehouses across the country and we’ve seen it building
year to year," said Joe Jobe, NBB’s chief executive officer.
Jobe
said many governors and legislators want to go beyond what is happening
on the federal level "and are tapping into their own state
resources to offer proposals that will not only reduce our reliance on
foreign oil, but create jobs and strengthen state economies."
California
Gov. Arnold Schwarzenegger issued an executive order last year that
establishes a target for the state to produce and use a minimum of 20
percent of its biofuels within the state by 2010. That figure would
increase to 75 percent by the middle of the century.
Illinois
Gov. Rod Blagojevich introduced a plan last August that would replace 50
percent of the state’s current supply of imported oil with renewable
homegrown biofuels such as ethanol and biodiesel.
Blagojevich’s
plan would also invest $25 million to help build five new biodiesel
plants. On top of that, the plan would provide new incentives to drive
continued investment in Illinois’ biofuels industry and increase
public availability at the same time.
As
Blagojevich was announcing his plans, Michigan Gov. Jennifer Granholm
used the same month to announce her state was setting aside $250,000 to
help gas station owners convert pumps to alternative fuels. It may be a
small amount at the moment, but Granholm and other Michigan officials
are hoping it’s only the beginning.
It
may be awhile before the refineries can generate enough biofuel to pump
into cars or trucks around Alabama, but some communities already are
ahead of the curve.
In
February of last year, ethanol-powered police SUVs in Hoover were
featured at a gathering of Auburn University researchers and federal
officials looking at ways to reduce dependence on foreign oil.
As
2006 drew to a close, Hoover’s success story had spread about the
country and President Bush dropped by to compliment Mayor Tony Petelos.
It
was the latest example of how far Alabama has advanced in the field of
alternative fuels. It’s a trend most state officials feel will
continue to grow.
Alvin
Benn is a freelance writer from Selma. |
