Treasury Secretary Tim Geithner and Energy Secretary Steven Chu Tuesday announced $502 million in cash assistance to energy production companies in place of earned tax credits.
This first round of funding unding the Recovery Act is primarily designated for wind projects, though additional awards are expected in the next few weeks.
The new funding creates additional upfront capital, enabling companies to create wind jobs and begin construction that may have been stalled until now due to the ongoing economic recession.
Created under Section 1603 of the Recovery Act, the program is expected to provide more than $3 billion in financial support for clean energy projects by providing direct payments in lieu of tax credits. However, the program is not capped to a specific level.
“These grants will help America’s businesses launch clean energy projects, putting Americans back to work in good construction and manufacturing jobs," Secretary Chu said. "The initiative will help double our renewable energy capacity over the next few years and make sure America leads the world in creating the clean energy economy of the future.”
These payments will support an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities in all regions of the country over the life of the program. As a result of this first round of funding, more than 2,000 Americans will have access to jobs in the renewable energy industry–both in construction and in manufacturing–DOE said.
The following 12 projects represent a combined capacity of 840 megawatts:
- Movement Gym PV System (Solar), Boulder, CO $157,809
- Solaire Development, LLC, Danbury, CT $2,578,717.00
- Evergreen Wind Power V, LLC, Danforth, ME $40,441,471
- Moraine II Wind Farm, Woodstock, MN $28,019,520
- Canadaigua Power Partners, LLC (Wind), Cohocton, NY $52,352,334
- Canadaigua Power Partners II, LLC (Wind), Cohocton, NY $22,296,494
- Wheat Field Wind Farm, Arlington, OR $47,717,155.00
- Hay Canyon Wind Farm, Moro, OR $47,092,555
- Pebble Springs Wind Farm, Arlington, OR $46,543,219
Highland Wind Farm, Salix, PA $42,204,562 - Locust Ridge II, LLC (Wind), Shenandoah, PA $59,162,064
- Penascal Wind Farm, Sarita, TX $114,071,646
In Related News…
Iberdrola Renewables Inc (IBR.MC) said it received approval for nearly $300 million in federal stimulus funds to support wind farms in four U.S. states. The company expects to hear about three additional grant applications by the end of the month.
Link to Reuters coverage below.
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