Oct 2 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Shelley Nelson The Daily Telegram, Superior, Wis.

Gov. Jim Doyle made a stop at Elkhorn Industries in Superior today to pitch plans for a $450 million private-public investment in renewable energy.

The company, which creates engineered wood and board products from waste paper and wood, is the type of firm that could benefit from the proposed investment, Doyle said.

Already, the facility uses synthetic gas and has plans to use wood byproducts to fuel its operations, eliminating the need for fossil fuels like gas and oil, said Erik Monge, operations manager for Elkhorn Industries, which is located in the former Georgia Pacific plant at 301 N. Fifth St. All the companies working under Elkhorn Industries either create or use waste for other companies in the facility that can be used to develop of new products. For example, recycled paper and cardboard is used to make a corrugated board that is engineered to enhance the strength of wood

Doyle said Elkhorn Industries represents the kind of ingenuity the state will need to become a national leader in renewable energy and reduce the nation's dependence on fossil fuels.

"Here in Wisconsin, we're doing our part and setting an example for the nation in energy independence," he said. "This new state funding will encourage innovative new energy technologies across our state that will help the nation kick it's addiction to oil ... we should be more dependent on the Midwest and less dependent on the Mideast."

The governor's plan includes about $80 million in state funding. About $30 million will come from existing development money and $50 million from new state boding. The bonding will create a fund to guarantee loans and provide low interest loans to Wisconsin businesses looking to expand production or use of renewable fuels and energy. The goal is to leverage an additional $100 million in private-sector investment in renewable energy.

The program will also create tax incentives for gas stations that invest in E-85 and biodiesel tanks and pumps, making flexible fuels more accessible. Businesses with large private fleets would also be eligible for the tax credits.

Another $20 million will be set aside for grants to companies and researchers developing new technologies to increase renewable fuels.

Doyle said his goal is to generate 25 percent of the state's electricity and 25 percent of fuel for transportation from renewable sources by 2025. By 2030, he said he hopes the state will capture 10 percent of the national market for renewable energy.