U.S. agency provides $38 million to promote renewables

NASHVILLE, Tennessee, US, January 18, 2006 (Refocus Weekly)

The U.S. Department of Agriculture will provide US$19 million in grants to support the development of renewable energy projects and value added agricultural business ventures. Another $18.8 million will be provided to 33 rural economic development loan and grant recipients to spur economic growth and create or save 2,700 jobs in 19 states, says secretary Mike Johanns.

Awards will be made on a competitive basis, and applications must be received before the end of March.

“President Bush's commitment and the concerns about energy costs voiced at Farm Bill Forums across the nation, inspired us to develop a comprehensive energy strategy and I am pleased to demonstrate we are following through on that strategy,” says Johanns. “These Rural Development funds are a part of our strategy to bolster renewable energy and will help support small businesses and value added products.”

Grants can be used for feasibility studies, or marketing and business plans needed to establish a viable value added marketing opportunity for an agricultural product, or to provide working capital for operating a farm based renewable energy projects. Eligible applicants include independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority controlled producer based business ventures.

Since 2001, USDA has invested $290 million in renewable energy as part of a commitment to reduce dependence on foreign oil. The Value Added Producer Grant program encourages development of renewable energy projects and is part of a comprehensive energy strategy announced by Johanns in December to help farmers and ranchers mitigate the impact of high energy costs and develop long term solutions.

Under the program, the amount of working capital grants has doubled to $300,000, and $1.5 million will be allocated for grants of less than $25,000. Priority consideration will be given to applicants who have 51% of project costs dedicated to activities for a bioenergy project.

To date, the program has funded $116million in value added grants for 750 recipients across the country, including $20.5 million to develop renewable energy projects in 29 states. Renewable energy projects include biodiesel, ethanol or wind energy production, or the use of biomass to generate energy.


Click here for more info...

Visit http://www.sparksdata.co.uk/refocus/ for your international energy focus!!