TRENTON, N.J. (Jan. 16, 2013) – In support of the Christie Administration’s commitment to a greener and more affordable use, management and development of energy in the state, the New Jersey Economic Development Authority (EDA) and the New Jersey Board of Public Utilities (BPU) today launched the second iteration of the Large Scale Combined Heat and Power (CHP)/Fuel Cell Program. The rolling grant program, which follows a competitive program introduced last April, will support CHP and standalone fuel cell projects serving commercial, institutional and industrial customers in New Jersey.
“By increasing energy efficiency for businesses and reducing energy costs for all New Jersey ratepayers, this program represents a win-win for New Jersey’s economic and environmental future,” said EDA Chief Executive Officer Michele Brown. “The six projects approved under the competitive program will not only create hundreds of new construction jobs and leverage more than $67 million of total investment in New Jersey’s economy, but also will reduce carbon dioxide emissions by 85,695 tons annually.”
The rolling grant program launched today is available to support CHP or standalone fuel cell projects with an electric generating capacity of greater than one megawatt (MW). New Jersey-based government (federal, state or local), commercial, institutional or industrial entities advancing these projects are eligible. CHP systems greater than one MW with waste heat utilization must achieve annual system efficiency of at least 65 percent of the lower heating value; fuel cell projects greater than one MW without heat recovery must achieve annual system efficiency of at least 45 percent of the higher heating value.
“The BPU is committed to support CHP/Fuel Cell projects as outlined in Governor Christie’s Energy Master Plan. These on-site power generation technologies increase energy efficiency and reduce demand on the electric grid,” said Bob Hanna, President of the New Jersey Board of Public Utilities. “As was evident during Hurricane Sandy, businesses and institutions that have invested in CHP have solid advantages during power outages.”
Grants through the program will be awarded under a tiered incentive structure based on the system size and amount of electricity that the project generates, with a maximum award of $3 million per project. Total state and/or federal funding cannot exceed 50 percent of the total project cost. Funding can be used for project-specific, fixed asset purchases. The tiered incentive structure is as follows:
Greater than 1 MW to 3 MW $0.55 per watt
Greater than 3 MW $0.35 per watt
Maximum Incentive $3 million
Maximum Percent of Project Cost 30%
Fuel Cell Projects
Greater than 1 MW $2.00 per watt
with Waste Heat Utilization
Greater than 1 MW $1.50 per watt
without waste heat utilization
Maximum Incentive $3 million
Maximum Percent of Project Cost 45%
The EDA will accept program applications beginning January 16, 2013. There is a two-part application process for this open solicitation: applicants must first complete a technical application; if found to be technically eligible, the EDA’s standard online application must then be completed. Both applications can be accessed via www.njeda.com/lschp-fc. In addition to the online submission, applicants should send two copies of requested documentation on a CD-Rom or USB flash drive to the following address:
Large Scale CHP-Fuel Cells Application
New Jersey Economic Development Authority
36 West State Street
P.O. Box 990
Trenton, NJ 08625
All complete applications meeting technical requirements will be reviewed and scored on a first come, first serve basis. Those applications meeting the minimum score requirement will subsequently undergo financial and business due diligence. Questions regarding this solicitation should be submitted to email@example.com.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.