NYSERDA Press Releases

Biofuels Get Boost in Western New York
Region Receives First Shipment of Biodiesel
NYSERDA and NOCO Announce Start of Ethanol Initiative

August 19, 2002 (Tonawanda, NY) – The New York State Energy Research and Development Authority (NYSERDA) and NOCO Energy Corp. announced today the first shipment of biodiesel fuel entered into New York State. NOCO received a shipment of 20,000 gallons of biodiesel that it will blend with conventional diesel and market in the Buffalo-Niagara Region as "B20." B20 is an industry term for a diesel fuel mixture that contains 20% biodiesel. NOCO is the first biodiesel retailer in the state and is trying to become the first certified B20 marketer in the country.

In addition, the two partners announced today that NOCO will use support from NYSERDA and the U.S. Department of Energy to develop an ethanol fueling network for Western New York. The demand for biofuels is rising rapidly because of their potential to reduce petroleum consumption and greenhouse gas emissions. NYSERDA is partnering with NOCO on development and demonstration projects for biofuels to displace petroleum-based diesel and fuel oil products.

"Biofuels represent a renewable energy source with the potential to create new markets for New York State farmers and new economic development opportunities for progressive energy companies like NOCO," said William M. Flynn, President of NYSERDA. "In addition to the environmental benefits like reduced carbon dioxide emissions, these fuels can be produced within our borders from agricultural crops like soy beans, providing us with a domestically produced fuel that will lower our dependence on imported petroleum."

"In order for NOCO to continue to be a viable industry and employer in the region, we
have to find new ways to grow and expand our products and services and biodiesel and ethanol fuels are some ways in which we can achieve these important company goals," James D. Newman, President, NOCO Energy Corp. said. "We are very grateful to NYSERDA, New York State, Erie County and the many other participants in these exciting projects. We look forward to many future collaborations as these industries grow and expand."

"Today, thanks to NOCO NYSERDA, and the U.S. Department of Energy, Erie County has been brought to the forefront in the use of alternative fuel sources," said Erie County Executive Joel Giambra. "We have received our first shipment of biodiesel fuel, that can eventually be made from crops grown right here in Erie County, and which will be used by NOCO to produce a diesel fuel mixture for use in Niagara and Erie Counties. This achievement, coupled with today's announcement that NOCO will partner with NYSERDA, the U.S. Department of Energy, Clean Communities of Western New York, and the National Ethanol Vehicle Coalition to develop a network of ethanol fueling stations in the metropolitan Buffalo area, provides excellent economic and environmental news for Western New York."

"Next month will be the one-year anniversary of the terrorist attack on our nation that took the lives of thousands of our fellow citizens. That tragic incident made us all aware of our need for energy self-sufficiency," said Senator Mary Lou Rath. "Today is a proud day not only for Tonawanda and Erie County, but for all of New York State, as we take delivery of our first shipment of biodiesel fuel into New York. Biodiesel fuel produced from agricultural products is "American made," and this is a big step in our efforts towards energy self sufficiency."

"I commend NOCO and those associated with developing a network of ethanol fueling sites in the Buffalo area," said Assemblyman Robin Schimminger. "As our nation and State focuses on alternative fuel autos and trucks, it is imperative that re-fueling stations be made available for these vehicles. Here in Western New York, the US Postal Service, New York State Thruway Authority, and local and federal governments will benefit from this project which will reduce greenhouse gas emissions and reduce petroleum use."

The newly announced ethanol project will have NYSERDA, the U.S. Department of Energy, Clean Communities of Western New York, the National Ethanol Vehicle Coalition and NOCO Energy Corporation as sponsoring partners. For this $285,000 project, NOCO will develop a network of three strategically located, public access ethanol (E85) fueling sites at NOCO retail fueling stations in the Buffalo metropolitan area. These fueling sites will initially be used by the US Postal Service to fuel 100 of its flexible fuel vehicles. Additional participating fleets from the NYS Thruway Authority, major universities, and local federal government departments are expected to benefit from this project. The results of this project are expected to reduce green house gas emissions by 2800 tons and reduce petroleum consumption by more than 857,000 gallons over the life of the alternative fuel vehicles.

NYSERDA previously provided $150,000 in funding to NOCO to develop the needed infrastructure improvements for NOCO to blend, market, and use 490,000 gallons of B20 biodiesel. Biodiesel has the potential for positive energy, environmental, and economic impacts on New York State. The fuel can be produced domestically and blended with traditional diesel to boost energy security while creating new crops and markets for farmers. Biodiesel, produced from agricultural products such as soy beans, leaves great opportunity for farmers to grow the soy beans and other new crops for use in the development of biodiesel. Use of B20 also results in a 15% reduction in carbon dioxide emissions compared to conventional diesel. The Town of Tonawanda, NOCO, and the Niagara Frontier Transportation Authority will use the biodiesel produced as a result of this project. This project will result in a reduction of petroleum diesel fuel consumption by nearly 98,000 gallons, and a reduction of greenhouse gas emissions by about three quarters of a ton over the life of this project.

Greater use of biofuels will benefit consumers economically by reducing their vulnerability to petroleum price fluctuations. The transportation sector in New York State uses 1 billion gallons of diesel fuel a year. 99% of fuel powering New York's transportation sector comes from petroleum products and 85% of that petroleum is imported from foreign countries. Biofuels can reduce the need for these imports while diversifying the fuel mix in the transportation sector.

"The U.S. Department of Energy's Clean Cities Program is excited to be a part of this project," said Stephen Costa, Transportation/Clean Cities Project Manager for the U.S. Department of Energy. "Ethanol, or E85, will hopefully become a fast-growing alternative fuel in the Northeast for both public and private fleets, as well as the general public. These new stations in Western New York are key components towards building that infrastructure."

These projects demonstrates the continuing commitment of NYSERDA, NOCO and their partners to the successful development and demonstration of biodiesel fuels. These fuels will provide a wide range of fuel users with operational dependability, ready availability, economical replacement of petroleum-based fuels, and a significant reduction in emissions.

NOCO Energy Corp located in Tonawanda, New York is a family owned and operated petroleum distribution business.

-30-