Southern States Enters into a Alliance to Produce Biodiesel
ONTARIO, Calif.--Feb. 27, 2001--Southern Power Co., Inc. (OTCBB:SSPC). The alliances are with biodiesel manufacturers utilizing soybean oil as their feedstock.
U.S. Agriculture Secretary Ann Veneman's wide ranging speech said on Feb. 22, 2001 the U.S. farm industry needs to increase efforts to develop alternative fuels like grain-based biodiesel (soybean) and ethanol (corn) as the United States searches for new sources of energy. "The nation needs new sources of clean, dependable energy and agriculture needs new markets--a coincidence of needs upon which we should capitalize," Veneman also broadly outlined the Bush administration's agricultural objectives for the coming months at her first public address at the U.S. Department of Agriculture USDA annual Agricultural Outlook Forum.
The USDA this month selected 79 bioenergy plants in 19 states to participate in a $150 million program encouraging production of alternative fuels.
President George W. Bush has repeatedly stated that the country needs to increase its domestic energy supplies and become less dependent on crude oil imports.
Southern States Power Co., Inc.'s most recent contract is with a large commercial account in Arizona for some 1.2 million gallons a year of soybean oil based biodiesel. Biodiesel is a clean burning diesel fuel that has recently been designated as an "Alternative Fuel" by the U.S. Environmental Protection Agency (USEPA) and the U.S. Department of Energy (USDOE). Since this designation, the national volume of biodiesel fuel has grown dramatically from less than one half million gallons in 1998 to over 20 million.
Biodiesel, a Clean Renewable Alternative Fuel, Offers Four Major Advantages over Other Alternative Fuels:
1. It is readily mixed with petroleum diesel--and will qualify
with USEPA as an alternative fuel in a blend as low as 20%
biodiesel and 80% petroleum diesel.
2. Biodiesel delivers essentially the same ranges and power as
traditional diesel.
3. The transition to biodiesel by the operator requires no costly
equipment investment in engine or fuel components, and no
changes in ground fueling systems.
4. Biodiesel restores lubricity that is lost with the mandated
reductions of sulfur from petrochemical diesel fuels.
Federal legislation is pending, supported by engine component manufacturers that would require a minimum or 2% blend of biodiesel in all diesel sold. The objective is to protect engine components that are not properly lubricated when low-sulfur diesel is used.
The State of Minnesota is poised to be the Lead State in implementing such a requirement.
Southern States Power Co., Inc has been at the cutting edge of biodiesel development and production -- and has formed alliances with major producers of biodiesel as well as built their own production facilities to serve this rapidly growing demand.
