Ethanol and bioenergy grants announced

Economic assistance will foster the development of alternative energy sources, spur economic growth and job creation in rural communities
By | October 01, 2002
Iowa ethanol and bioenergy projects will receive $2,174,500 as part of Value-Added Agricultural Product Market Development grants in 22 states, totaling over $7.2 million, Agriculture Secretary Ann Veneman announced last month.

The grants will foster the development of alternative energy sources while spurring economic growth and job creation in rural communities. The alternative energy grants are a portion of the Value-Added Agricultural Product Market Development grants totaling more than $37 million in 43 states announced separately last month.

Some of the grant funds will be used to develop ethanol facilities in Iowa. The Big River Resources Cooperative in Mediapolis will use its $500,000 grant to assist in the start-up of a 40 mmgy ethanol plant. In Holstein, a $75,000 grant to the Galva Holstein Ag, LLC will help determine the feasibility of using dried distillers grain as the basis for an environmentally friendly fertilizer. Dried distillers grain is a coproduct created in the process of making ethanol.

"These projects will bring new opportunities for developing alternative energy sources as well as create other value-added agricultural products that provide real investment in our rural communities," said Veneman.

These grants fund projects in several states, including Illinois, Iowa, South Dakota and Wisconsin, to develop 40 mmgy ethanol facilities. Over $5 million dollars in grant funds were awarded to 22 proposed ethanol ventures in 14 states.

"The tremendous volume and quality of applications is a testament to the innovation and vision existing in rural America for improving our rural communities," said Under Secretary for Rural Development Tom Dorr. "These grants will provide important investments in the area of energy where the agricultural sector continues to be a leader in forging new solutions."