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  • $200 Million loan funds available from USDA for renewable energy and energy efficiency projects

    Exeter Agri-Energy utilized a USDA Rural Development REAP Guaranteed Loan along with $500,000 in REAP Grant funds to install an anaerobic digester at Stonyvale Farm, Maine.

    By Ramona du Houx

     USDA Rural Development has approximately $200 million available through the REAP guaranteed loan program for fiscal year 2016 to finance renewable energy and energy efficiency projects in Maine’s rural communities.  The agency is now accepting applications from rural small businesses and agricultural producers to compete for $200 million in guaranteed loan funds.

      "This funding opportunity represents substantial potential for rural Maine businesses and agricultural producers to make long-term investments in renewable energy systems and energy-efficiency improvements through a local lender using USDA Rural Development’s REAP guaranteed loan program. This collaboration can help our businesses significantly reduce operating costs, decrease Maine’s independence on foreign oil, and ultimately demonstrate their positive environmental values to their customers and community," said USDA Rural Development State Director Virginia Manuel.

    Loan purposes include financing renewable energy systems such as biomass fueled anaerobic digesters and biodiesel production, solar, wind, geothermal, etc., and making energy efficiency improvements such as efficient lighting conversions, motor upgrades, building envelope improvements, HVAC upgrades and more.

    Exeter Agri-Energy utilized a USDA Rural Development REAP Guaranteed Loan along with $500,000 in REAP Grant funds to install an anaerobic digester at Stonyvale Farm, a third generation Maine dairy farm. The energy offset by the system through savings on electricity, heat, and cattle bedding was estimated to be $250,000 annually.

    Stonyvale Farm collects manure from 1,000 milking cows, and processors deliver organic waste to augment and optimize a "special" recipe that serves as the fuel. The careful introduction of organic waste into the digesters, in just the right amount and at just the right time, is part of the unique “edge” that EAE has developed at Stonyvale Farm.

     The system heats the manure/organic mixture to just over 100 degrees Fahrenheit, and agitates it intermittently over a 15-25 day retention period. At this point the concoction produces an energy-packed supply of biogas, a potent combination of methane and carbon dioxide. A 1,500 horsepower engine burns the biogas, powering a generator that produces enough heat every day to replace 700 gallons of heating oil on average, and 22,000 kilowatt hours of electricity. On an annual basis, that’s enough energy to heat 300 New England homes and enough to power as many as 800 households.

     Funds are being made available through Rural Development’s Rural Energy for America Program (REAP). Agricultural producers and rural small businesses benefit from available credit, favorable rates and terms, and energy and cost savings.

    Guaranteed loans are available for up to 75 percent of the total eligible project cost, and loan amounts can range from $5,000 to $25 million. The REAP loan guarantee requires that 25 percent of project costs come from other funding sources such as business equity or other borrowed funds, which could include a USDA Rural Development Business & Industry Guaranteed Loan. REAP loan guarantees range from 85 percent for loans of $600,000 and less to 60 percent for loans of more than $10 million. 

    For more information on how to apply, interested rural Maine businesses, agricultural producers, and lenders may contact Brian Wilson at 990-9168 or brian.wilson@me.usda.gov or visit http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency/me.