USDA releases $25 million NOFA for Repowering Assistance Program

By Anna Austin | February 07, 2012

The USDA has announced a $25 million Notice of Funding Availability for its Repowering Assistance Program, which is designed to provide a financial incentive to biorefineries to use biomass in place of fossil fuels for heat or power production.

The amount of the payment depends on the cost effectiveness of the biomass system and the percentage reduction in fossil fuels used by the biorefinery. The maximum amount a biorefinery can receive is 50 percent of the total eligible project cost, up to a maximum of $10 million. The number and amount of payments depends on the number of eligible biorefineries.

According to eligibility rules, a biorefinery must have been in existence on or before June 18, 2008, and all qualifying costs must be related to construction or repowering improvements, such as engineering design, equipment installation and professional fees.

The 2012 application deadline is June 1.  For more details, click here.

Along with the Repowering Assistance Program, USDA also announced a $25 million NOFA to make payments to advanced biofuel producers who expect to produce eligible advanced biofuels any time during 2012.