USDA awards REAP funding to 7 ethanol producers
The USDA has awarded $256.56 million in loans and grants under the Renewable Energy for America Program, benefiting over 1,100 clean energy projects. Among these, grants were provided to several ethanol plants to support efficiency upgrades and reduce energy consumption. Projects include a new oil recovery system for Elite Octane in Iowa, a biorefinery for Dairy Distillery in Michigan, and a combined heat-and-power system for Heartland Corn Products in Minnesota. These improvements are expected to enhance production, cut costs, and save significant energy across the industry.
November 15, 2024
BY Erin Voegele
The USDA on Nov. 14 awarded $256.56 million in loans and grants to more than 1,100 clean energy projects under the Renewable Energy for America Program. A portion of that funding will support projects at ethanol plants.
Iowa-based Elite Octane was awarded a $500,000 grant to support the installation of a new, more efficient oil recovery system. The project is expected to save $913,582 per year and reduce electricity needs by 10.1 million kilowatt hours (kWh), which is enough to power 932 homes.
In Michigan, the Dairy Distillery Alliance LLC was awarded a $1 million grant to support the construction of a biorefinery that will convert milk permeate into low-carbon ethanol. The project is expected to realize $4.42 million per year in income and produce 1.14 million gallons of ethanol annually.
Heartland Corn Products was awarded a $1 million grant to support the purchase and installation of a combined-heat-and-power (CHP) system at its dry mill ethanol plant in Minnesota. The project is expected to generate an additional $16.71 million in annual electrical costs and will produce an additional 153.22 million kWh per year, which is enough electricity to power 14,139 homes.
North Dakota-based Hankinson Renewable Energy LLC was also awarded a $1 million grant. The award will support the purchase and installation of an additional fermentation tank for an existing 157 MMgy ethanol plant. The project is expected to increase ethanol production by 2.1 MMgy, enough to fuel 2,845 automobiles annually.
In Nebraska, Sandhills Renewable Energy LLC was awarded a $500,000 grant to support the installation of a more energy-efficient cooling tower at its ethanol plant. The new system is expected to save the company $320,000 per year in electrical costs and replace 4.5 million kWh of electricity, equivalent to 11% of the company’s total energy use, which is enough to power 417 homes per year.
Also in Nebraska, Siouxland Energy LLC was awarded a $500,000 grant to install an energy-efficient free on truck (FOT) oil recovery system. The new system is expected to save the company $690,300 in electrical costs annually, replacing 32.8 million kWh, or 6% of the business’s energy use. That much electricity can power 3,030 homes for a year.
Aberdeen Energy LLC was awarded a $500,000 grant to support the installation of an exhaust system upgrade at its South Dakota ethanol plant. The project is expected to save $3.38 million and replace 17.03 million kWh of electricity annually, enough to power 1,571 homes.
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Source Link : Ethanol Producer Magzine
