Energy Dept., Treasury announce $550M more in grants for green energy projects

Today, Treasury secretary Timothy Geithner and Energy secretary Stephen Chu joined forces to announce $550 million more in cash awards for 25 cleantech energy projects and companies under the banner of the U.S. stimulus package. So far, the government has provided more than $1 billion in financing to jumpstart the sector, which took a hit in private investment following the economic downturn.
The primary goal behind the money is of course to create new green-collar jobs in the U.S., as president Obama promised he would shortly after his inauguration in January. The government also believes that federal funding will infuse companies so that venture capitalists and private equity houses feel more comfortable investing substantial amounts in the space again. Beyond that, the money should accelerate development of renewable power sources, helping to country transition its energy mix by mandated deadlines.
At the beginning of the month, the two executive departments announced $502 million in cash grants for 12 green energy companies. The new $550 million is being added to that total — distributed to 25 projects in different amounts. The top beneficiaries include Barton Wind Farm (Kinsett, Iowa), receiving $93.4 million, Pyron Wind Farm (Roscoe, Tex.), with $121.9 million and Farmers City Wind Farm (Tarkio, Mo.) with $84.9 million. Again, there is an obvious emphasis being placed on wind developments. For now, wind appears to be the most promising avenue for renewable generation — it produces more megawatts than solar for a lower price.
There were several exceptions, however. Enel Salt Wells and Enel Stillwater, both geothermal development projects, received $21.2 million and $40.3 million respectively. And the BioFuel Oasis Cooperative, based in Berkeley Calif., nabbed $16,858 (a small but significant amount for a worker-owned organization that converts vegetable oil into usable fuels). Solyndra, the Fremont, Calif., company that just received $535 million from the government is also technically a recipient in the same program.
Applications for this money were accepted starting at the end of July via the American Recovery and Reinvestment Act. But the program isn’t done passing out money yet. The government has estimated that upwards of $3 billion will be sunk into about 5,000 alternative energy producers. While wind is in the lead, solar and biomass projects will also benefit, the Department of Energy says. The program has received thousands of applications. The money is administered by the Treasury, but the recipient projects are chosen primarily by the DOE.
For a full list of all recipients in this round of grants, go here.
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