USDA Announces Funding to Convert Biomass to Energy

Deputy Agriculture Undersecretary for Rural Development Doug O'Brien announced that U.S. Department of Agriculture (USDA) is funding a series of projects to convert biomass to energy through USDA's Rural Energy for America program. (REAP). The announcement was made during an event in Halifax, Va., to mark USDA Rural Development's participation in construction of a biomass plant to be operated by the Northern Virginia Electric Cooperative.

"The Obama Administration is assisting cooperatives, small businesses, farmers and ranchers, as they work to reduce their energy costs," O'Brien said. "When energy costs are reduced, American rural businesses become more competitive, allowing them to expand and create jobs."

For example, NC-CHP Owner I LLC of Asheville, N.C., received a $5-million loan for the installation of a combined heat and power system in Montgomery County. The system will generate steam by using a boiler system powered by wood chips and will also generate 5.25 million kilowatt hours (kWh) of electricity per year. Also in Montgomery County, applicant EWP LLC will receive a $146,000 grant to install equipment at an existing hydroelectric plant so it can be reopened. The project has the potential to generate an estimated 2.8 million kWh per year.

The announcement concluded 2011 biomass project funding assistance for a total of 52 projects with just over $31 million in grant and loan note guarantees through the Rural Energy for America Program. This support helped leverage a total of $154.5 million of biomass project development in 26 states, which will help produce clean, renewable heat and power for farms and small businesses in rural America.