Keystone BioFuels this week became the state’s first company to manufacture and ship biodiesel made from Pennsylvania-grown soybeans.

“Alternative energy is important to the agriculture industry and to all Pennsylvanians,” said Agriculture Secretary Dennis Wolff during a tour of Keystone BioFuels in Shiremanstown, Cumberland County. “Our farmers are going to play a key role in driving the commonwealth through alternative fuels for cars, equipment and home heating. This will boost the economy, providing jobs and adding more than $1 billion of revenue in the next decade.”

The company, in operation since March 2006, is currently producing 3,000 gallons of soy diesel per day, with the potential to produce one million gallons per year. A $6 million expansion is planned for year’s end, enabling the production and storage of 5 million to 7 million gallons of soy diesel.

In Pennsylvania, there is a growing interest in producing and using biodiesel. As much as 40 million gallons of biofuel production is expected to come on line during the next year, making the state the leader in soy-based fuel production nationwide.

Last year, Pennsylvania farmers harvested 420,000 acres of soybeans and an estimated 450,000 acres of soybeans were planted this spring.

Within the next decade, the state’s alternative fuels industry is expected to use 546 million bushels of corn and 5.1 billion pounds of fats and oils to make ethanol and biodiesel. Half of the corn and nearly two-thirds of the fats and oils are predicted to be produced by Pennsylvania farmers.

Citizens for Pennsylvania’s Future this week issued a report saying biodiesel and other renewable fuels could create 25,775 new jobs in Pennsylvania by 2017.

For more information, visit the Keystone Biofuels website.

6/16/2006