USDA provides loans for biomass power projects
October 18, 2012, Washington, DC – The USDA announced loan guarantees to support three biomass power plants, with more than $250 million in loan guarantees.
The funding, which was awarded by USDA’s Rural Development’s Rural Utilities Service, aims to help electric utilities upgrade, expand, maintain and replace rural America’s energy infrastructure. The agency also funds renewable energy and energy conservation projects. Under this round of funding, biomass projects in Colorado, Hawaii and Texas/Louisiana have received loan guarantees, subject to the recipient meeting the terms of the loan agreement.
In Colorado, Eagle Valley Clean Energy LLC was awarded a $40 million loan guarantee. The support will partially finance a 11.5 MW power plant that takes in woody biomass as fuel.
Green Energy Team LLC was awarded a $72.88 million loan guarantee. The funding will help support the development of a 7.5 MW power plant in Hawaii. That facility will also utilize woody biomass as fuel.
Finally, USDA’s Rural Development’s Rural Utilities Service awarded East Texas Electric Cooperative Inc. with a $151 million loan guarantee.
The funds will be used to finance a 50 MW renewable energy plant fueled by woody biomass.
A total of two dozen projects received support under this funding round, with a total of $1.95 billion in loan guarantees announced.