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USDA invests over $2.2 million in clean energy projects across Iowa

These projects aim to reduce energy costs, create new market opportunities and support job growth for farmers and rural businesses.

Solar Panel Installation Pixabay

The U.S. Department of Agriculture (USDA) announced today that it will provide $2,214,291 in funding for five clean energy projects across Iowa through the Rural Energy for America (REAP) program. The grants aim to expand renewable energy systems, create new market opportunities, and enhance job growth for farmers, ranchers, and agricultural producers. This initiative supports President Biden’s Investing in America agenda, which seeks to strengthen the economy and improve energy security by focusing on rural and agricultural communities.

“Today’s REAP announcement will help support rural communities, small businesses, and producers as they transition to clean energy systems on their properties,” said USDA Rural Development State Director in Iowa, Theresa Greenfield. “The Biden-Harris Administration is working to secure our energy future by investing in clean, renewable power so that agricultural producers and small businesses throughout Iowa can lower costs and grow their businesses.”

Iowa REAP Projects:

  • Lincolnway Energy LLC received a $1,000,000 grant to install a grain-to-alcohol conversion system at its facility near Nevada, Story County. This project will generate 223.7 million kilowatt hours annually, translating into $18.3 million in savings and producing enough electricity to power 20,643 homes.

  • Quad J Inc. was awarded $61,468 to install an energy-efficient grain dryer at its facility in Washta, Cherokee County. The dryer will reduce energy consumption by 50%, saving $3,242 annually and producing enough electricity to power five homes.

  • Cresco Heating and Ventilating LLC secured a $30,556 grant to install a 61.32-kilowatt solar project at its HVAC business in Cresco, Howard County. This solar installation is expected to generate 83,983 kilowatt hours of energy annually, saving $10,078 and powering seven homes.

  • GrowAg Investments LLP, a hog production real estate holding company, received $327,109 to install solar arrays across multiple counties, including Emmet, Palo Alto, Kossuth, Hancock, and Pocahontas. The arrays will generate 398,090 kilowatt hours per year and bring in $46,200 in revenue while powering 36 homes.

  • Red Lion Perry Solar II received $795,158 to help install an 866-kilowatt solar array in Perry, Dallas County. The system will produce 1,081,506 kilowatt hours annually, enough to power 100 homes.

Background on the REAP Program:

USDA's REAP program provides loan financing and grants to agricultural producers and rural businesses to implement renewable energy systems and improve energy efficiency. This support helps cut costs, reduce emissions, and boost rural economies. As part of President Biden's Inflation Reduction Act, an additional $600 million will be available for REAP projects across three funding rounds until 2027. Applications for the first round are due by Dec. 31, 2024, and March 31, 2025.

These clean energy initiatives are part of the administration's Justice40 initiative, ensuring that 40% of the benefits from federal investments support disadvantaged and underserved communities.

This latest funding underscores USDA’s commitment to advancing clean energy in agriculture, promoting sustainability, and improving the economic vitality of rural America.

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