US awards $550m in second renewable energy grant round

9/23/2009 9:48:32 AM

http://www.rechargenews.com Richard A. Kessler

The federal government has awarded $550m in a second round of grants to companies developing US renewable energy projects, bringing the total funding amount to $1.05bn from the March economic stimulus package.

“These investments are crucial to ensuring America can compete and win in the race for the clean energy jobs of the future,” says Energy Secretary Steven Chu.

The grants will pay cash right away to companies in lieu of tax credits totaling 30% of the qualifying project cost. Twenty-five projects qualified for awards in this round.

The US Energy and Treasury departments believe the grants improve project viability; enable companies to create and retain jobs, and establish sufficient financing bases for projects that may otherwise not be possible; and dramatically expand and accelerate development of renewable energy projects.

“This Recovery Act program is an example of a true federal partnership with the private sector,” says Treasury Secretary Timothy Geithner.

Under the program, DOE reviews and selects the projects and Treasury disburses the money.

The wind energy sector was the biggest recipient in this round of renewable energy grants, with remaining money going to biomass, geothermal, landfill gas, solar and other projects.

Projects receiving the most money were Pyron wind farm in Jacksboro, Texas, $121.9m; Barton wind farm in Kinsett, Iowa, $93.4m; Bull Creek wind farm in O’Donnell, Texas, $91.3m; Farmers City wind farm in Tarkio, Missouri, $84.9m, and Barton Chapel wind farm in Jacksboro, Texas.

President Barack Obama has made a commitment to double US renewable energy production by 2012.

At least $2bn in stimulus money remains to be disbursed for clean energy projects.

“The support provided by Congress and the Administration is visibly helping our industry recover from the economic meltdown,” says Rob Gramlich, senior vice president for public policy at the American Wind Energy Association in response to the renewable energy grants.

“We especially appreciate the efficiency that the Departments of the Treasury and Energy have demonstrated in getting these urgently needed funds out the door,” he adds.