2004

Release: Immediate
Contact: Jean Donovan, NYSERDA, (518) 862-1090, Ext. 3516
or jmd@nyserda.org

NOCO Energy Receives State Funding for Biodiesel Projects
More Than $235,000 Awarded for Projects in Erie and Monroe Counties

Albany, NY (September 20, 2004) - The New York State Energy Research and Development Authority (NYSERDA) announced today that NOCO Energy Corporation has been selected to receive funding for several demonstration projects in Erie County and the Rochester area to promote the use of biodiesel fuel. The company will work with both public entities and private industry to introduce the use of biodiesel fuel into their fleets. Participating partners in the demonstrations include the Eastman Kodak Company, the Erie County Highway Department, the Town of Pittsford, and six regional school districts.

Biodiesel is an American-made renewable alternative to conventional diesel fuel. It is blended from agricultural commodities like soybean and rapeseed (virgin oils), or refined from cooking oils and unwanted animal fats (non-virgin oils). Manufacturing biodiesel is a relatively simple process, and it is usually mixed at a ratio of 20 percent (B-20) with 80 percent normal diesel. The fuel reduces emissions and improves lubricity.

NYSERDA President Peter R. Smith said, "Governor Pataki, in his State of the State address this year, charged NYSERDA with making New York's bio-fuels industry one of the strongest in the nation, and projects like this are what will help us reach that goal. The use of biodiesel fuels truly represents a win-win for all those involved because it will help reduce our dependency on foreign oil, improve our environment by reducing emissions, and create economic development opportunities as we grow the industry."

"We hope the announcement today begins a more deliberative process among public policy officials at all levels of government about the need to increase the use of alternative fuels, not only to meet various government mandates, but also because it is the right thing to do for our environment," said James D. Newman, President, NOCO Energy Corp. "New York State has the infrastructure and resources to manufacture these non-petroleum based fuels. Assistance and funding from NYSERDA provides the impetus to keep this critically important initiative moving forward."

NOCO Energy Corporation is a third-generation family-owned business that markets, sells, and distributes petroleum fuels and products throughout the area. The company's demonstration project with Eastman Kodak Company and Erie County Highway is being funded through a federally funded program, the Clean Cities Challenge, which is administered in New York by NYSERDA. The total funding for the fleet demonstrations with Kodak and Erie County will be $150,000.

The Kodak project includes a 170-vehicle fleet which is comprised of tractors, loaders, buses, ambulances, fire trucks, cranes, dump trucks, utility tractors, and straight trucks. The Erie County Highway Department will participate with 23 vehicles that are used for snow-plowing during winter months and road repair projects throughout the rest of the year.

A second Clean Cities Challenge award of $85,700 was also made to NOCO to partner with six school districts for the use of B-5 biodiesel, a five percent biodiesel blend to be used in district school buses. The districts participating in that demonstration include; the Hilton CSD (68 buses and 6 municipal support vehicles), Lyons CSD (18 buses and 26 municipal support vehicles), Pittsford CSD and the Town of Pittsford (72 buses and 43 municipal support vehicles), Sodus CSD (33 buses), Spencerport CSD (77 buses and 10 facility support vehicles), and Williamson CSD (28 buses and 3 municipal support vehicles). The Town of Pittsford and the Pittsford CSD will be fueled from the same fueling station.

These new projects build upon an earlier commitment of $420,000 by NYSERDA. In 2002 NYSERDA and NOCO began a western New York Biodiesel initiative to help build needed biodiesel infrastructure and fund deployment projects. Those funds were used to help purchase 1.2 million gallons of B-20 fuel during the past 18 months for 158 heavy-duty diesel vehicles, including transit and school buses, class 7 and 8 diesel trucks and heavy-duty dump trucks. These vehicles have traveled 2.6 million miles on the clean, renewable fuel.

NYSERDA funds come from State Energy Plan monies provided to New York State by the U.S. Department of Energy and are administered by NYSERDA. This is the sixth round of funding for the State's Clean Cities Challenge, and these projects are included in six to be funded statewide. Total funds to be allocated for these six projects will be approximately $800,000.

The federally funded New York State Clean Cities Challenge awards incentives to members of New York's Clean Cities organizations to purchase alternative fuel vehicles (AFVs) and/or refueling infrastructure. Clean Cities organizations in New York State include the Genesee area, Syracuse area, New York City, the Capital District, Western New York, and Long Island. These organizations are part of a national grassroots effort, chartered by DOE, to promote the use of AFVs.

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