Walden Announces Significant Biodiesel Investment for Pendleton Grain Growers
Walden-backed effort produces $300,000 to help spur alternative fuels innovation
September 21, 2006 -
Washington, D.C. -
Congressman Greg Walden informed the Pendleton Grain Growers, Inc. (PGG) last week that they have been awarded a $300,000 United States Department of Agriculture (USDA) Rural Development funds grant for the continued growth of PGG’s agri-biodiesel production program.
The $300,000 grant will be used for the purchase of additional inventory for the processing of canola seeds into biodiesel. Glycerin, a by-product, will be used in the production of wood pellets. PGG, a farmer-owned cooperative, began producing biodiesel in 2005, and processes approximately three tons of canola per day. Canola is a sound crop rotation alternative to wheat.
“I was a strong supporter of PGG President Al Gosiak’s pursuit of a USDA investment in PGG’s value-added approach to utilizing canola, and couldn’t be more pleased that the USDA views their cutting-edge program as favorably as I do,” Walden said. “At a time when our nation needs to diversify our energy sources, PGG represents the future: a locally-owned, farmer-controlled enterprise that has the potential to not only boost the local Umatilla County economy, but also provide a model that can be duplicated throughout the Pacific Northwest.”
On March 21, 2006, Walden, who is the Vice Chair of the bipartisan House Renewable Energy Caucus and Co-Chair of the bipartisan House Northwest Energy Caucus, wrote a letter to PGG commending their canola-to-biodiesel program and lent his strong support to their USDA value-added producer grant request. Walden’s letter was included in PGG’s application to USDA. The biodiesel made by PGG is primarily used for local farmers in eastern Oregon for their farm equipment, and if production meets demand, could eventually be shipped throughout the Pacific Northwest for use.
“The grant we received from the USDA will allow us to continue to develop a value-added and sustainable oil seed industry to benefit local producers here in our region,” PGG President Al Gosiak said. “I want to thank everyone who has helped make this award possible, particularly Congressman Greg Walden and his staff. We will use this opportunity wisely.”
PGG’s business model shows a 50-percent increase in returns when producing up to five million gallons of fuel from locally-grown Canola. By its third year, the local value-added benefit of the project could exceed $7.5 million before any economic multiplier is applied.
Congressman Walden represents the Second Congressional District of Oregon, which includes 20 counties in southern, central and eastern Oregon. He is a member of the House Committee on Energy and Commerce as well as the Committee on Resources, where he serves as Chairman of the Forests & Forest Health Subcommittee.
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