Varies by project and interest rate
The Biomass Energy Program assists businesses in installing biomass energy systems. Program participants receive up to $75,000 in interest subsidy payments to help defray the interest expense on loans to install approved biomass projects. Technical assistance is also available through the program.
Industrial, commercial and institutional facilities; agricultural property owners; and city, county, and state government entities are eligible. Interested parties must obtain loans from commercial lending institutions and submit repayment data to the Alabama Department of Economic and Community Affairs (ADECA) for interest payment assistance. ADECA pays the borrower directly, based on documentation of payment. The interest rates on loans should be no greater than 2% above the prime rate.
With an initial emphasis on wood waste, the program also promotes landfill gas as a potential source of energy for industrial processes and other uses. Several landfill waste disposal facilities across Alabama have been identified as prime candidates for landfill gas recovery and utilization.