USDA offers funds for biorefineries to convert to bioenergy

The USDA Rural Business Cooperative Service has announced it is soliciting applications under the Repowering Assistance Program to encourage the use of renewable biomass as a replacement for fossil fuels used to provide process heat or power in the operation of eligible biorefineries. Eligible biorefineries must have been in existence on or before June 18, 2008. Applications will be accepted through Oct. 24.

According to information published in the Federal Register, individual biorefineries can receive up to 50 pecent of total eligible project costs under the program, up to a maximum of $1 million. Eligible project costs include project related construction costs for repowering improvements associated with the equipment, installation, engineering, design, site plans, associated professional fees, permits and financing fees. However, any project costs incurred by the applicant prior to application for payment assistance is ineligible for payment assistance.

Additional information is available on the Federal Register website.