New Jersey Announces New First-Come First-Served Funding Opportunity for Combined Heat and Power Projects

February 7, 2013
Bruce S. Katcher, Brett E. Slensky
MGKF News Flash

On January 16, 2013, the New Jersey Economic Development Authority ("EDA") and the New Jersey Board of Public Utilities ("NJBPU") launched the second iteration of the Large Scale Combined Heat and Power ("CHP")/Fuel Cell ("FC") Program ("LSCHP-FC Program"). The LSCHP-FC Program is a rolling, competitive grant program that continues New Jersey's related efforts over the last several years aimed at promoting and increasing New Jersey's use of clean and efficient energy. A total of $25 million is available under the current program solicitation for qualifying CHP and FC projects. Grant applications are accepted on a first come, first served basis.

In general, CHP systems include a natural gas-fueled combined cycle combustion turbine to produce both steam and electricity from a single fuel source located on-site. Fuel cells are another CHP technology that generally employ a chemical reaction to convert chemical energy from a fuel into electricity. These highly efficient technologies recover heat that would otherwise be wasted during the generation of electricity and make use of that heat for commercial or industrial processes.

Eligible projects must be stationary (i.e., not mobile), have an electric generating capacity of greater than 1 megawatt, serve a governmental, commercial, institutional, or industrial electricity customer in New Jersey and meet program energy efficiency criteria. Grant awards are available for up to $0.55 per watt for CHP projects and $2.00 per watt for FC projects. The total amount of an award under the program is limited to $3 million per project, subject to a maximum percent of project costs (30 percent for CHP and 45 percent for FC) that a grant may cover. Total grant funding (federal and state) may not exceed 50 percent of the total project cost.

The current LSCHP-FC Program solicitation closes on June 25, 2013, so potential candidates for the LSCHP-FC program should get started right away. Please contact Brett E. Slensky at (484) 430-2322 or Bruce S. Katcher at (484) 430-2320 for more information on the LSCHP-FC Program and other incentive programs that may apply to your proposed project.