Montpelier--Lt. Governor Brian Dubie today announced that The Vermont Coffee Company in Bristol, Sugarbush Resort in Warren and Vermont Law School in South Royalton will each receive $2,500 to heat buildings, fuel vehicles and run industrial equipment, all using biodiesel as fuel. The three grants, awarded by the Vermont Sustainable Jobs Fund (VSJF), are designed to stimulate the use of biodiesel by Vermont institutions or companies.

Biodiesel is a renewable fuel derived from seed crop oils such as soy, or waste grease from restaurants. It is used either as a pure fuel (B100) or blended with petroleum diesel—commonly at twenty percent (B20). Biodiesel works in ordinary diesel engines and boilers with few or no modifications. Nationwide, more than 400 major commercial fleets now run on biodiesel.

“Bold, innovative thinking like these three grant recipients have shown, combined with the vision and support of VSJF,” said Lt. Governor Dubie, “creates a formula for success.” The pilot grants are part of the broader Vermont Biodiesel Project, through which VSJF and state partners help Vermonters gain experience using biodiesel. Dubie continued, “By working with institutions and large-scale purchasers on the demand side, we’re gaining practical knowledge about biodiesel applications, at the same time as we stimulate activity in this promising new economic development sector.”

Vermont Coffee Company will receive funding to help it use biodiesel in its coffee roasting operation. Sugarbush Resort intends to use biodiesel to run equipment for snowmaking and grooming operations. Vermont Law School will use biodiesel to heat buildings. “These applications represent three different uses, each with market potential in our state,” Dubie explained. “Each recipient will receive $2,500 from the Vermont Sustainable Jobs Fund to cover a portion of fuel costs, equipment and project evaluation. Overall, the grants will foster the use of approximately 20,000 gallons of biodiesel this winter.”

These funds granted by VSJF complement a $75,000 award to the Vermont Department of Public Service and VSJF from the U.S. Department of Energy. They will be used for additional commercial-scale biodiesel pilot tests and market development in Vermont. Together, the grants will increase statewide use of biodiesel.

In September, Lt. Governor Dubie convened a workshop at the Vermont Statehouse, where state agencies, private companies and citizens interested in biodiesel met to share perspectives, develop strategies and forge partnerships around the emerging biodiesel sector.

Dubie cites the development of biodiesel fuel sources and technology applications in Vermont as part of his Green Valley Project, an economic development initiative he launched in January, 2004 to promote Vermont’s growing environmental goods and services sector.

Biodiesel fuel has demonstrated significant environmental and economic benefits. Using biodiesel, say its proponents, reduces reliance on fossil fuels, provides markets for renewable resources grown in the United States, cuts air pollution, and creates healthier indoor work environments.

According to the VSJF Managing Director Ed Delhagen, use of locally manufactured biodiesel can keep more dollars in the state’s economy. Nationally, biodiesel is a growth industry with the potential to create new markets, and hundreds of jobs for Vermonters, he says. Recent biodiesel tax incentives authorized by Congress and signed into law by President Bush will further expand the biodiesel market in Vermont.

The Vermont Biodiesel Project is part of VSJF’s Cornerstone Project, which helps Vermont communities and companies cope with economic challenges by responding to new instate market opportunities. Since early in 2003, VSJF has helped build a network of institutions and businesses interested in working cooperatively to access the emerging biodiesel markets. Partners in the Vermont Biodiesel Project include the Vermont Department of Public Service, Vermont Biofuels Association, Biorenewables Energy Center, Vermont Agency of Natural Resources, Vermont Department of Buildings and General Services, Vermont Fuel Dealers Association, Smugglers Notch Ski Area, Vermont State Colleges, and several private fuel companies.

The Vermont Sustainable Jobs Fund is a state-supported, private, non-profit organization founded in 1995 with a mission to help build a sustainable economy in Vermont. VSJF’s legislative mandate states that it will create quality jobs that are compatible with Vermont’s natural and social environments. Through 2003, VSJF provided over 100 grants serving more than 2,000 businesses, leading to 330 jobs created or saved. VSJF used its state funding to leverage nearly $12 million in additional funding, consisting of $1.1 million in direct grants, $2.2 million in matching and in-kind contributions, and $8.6 million in grants to funded projects.

VSJF continues to build knowledge and experience within the state’s leading employers, working to generate healthy economic returns, viable landscapes, vital communities and quality work places.