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Wisconsin Energy Independence Fund
Commercialization/Adoption Projects
Loans to businesses that
are commercializing or producing innovative clean energy
products and processes. Projects would support the
production and adoption of energy from renewable
sources, as well as the manufacture of products that increase energy
efficiency or use of clean energy.
Awards
will target projects
that:
- are supported by established science;
- have
large market potential;
- have growth estimates
exceeding industry averages; and
- have significant
job creation potential.
Eligible Activities
- Construction
and expansion
- Working
capital
- Acquisition of existing businesses, land,
buildings, and equipment
Note:
Refinancing is not an eligible activity.
Finance
Terms And Conditions
Interest Rate
The
Department of Commerce will provide below market interest at a fixed
rate of 4% for the life of the loan.
Terms (up to
one year deferral)
- Real Estate:
10 to 15 years
- Equipment: 5 to 10 years
- Working
Capital: 5 to 7 years
Loans are
intended to be gap financing and typically will not exceed 25% of
project costs.
The First
Funding Cycle is Now Closed!
The
department is no longer accepting applications. Applications for
the first funding cycle were due June 2, 2008. Future funding cycles
will be announced on this webpage at a later date.
Examples of
Commercialization Projects
- Dr.
Al Cohall, a biochemist, recently created a UW spin-off, Cooganol, LLC,
to produce advanced biofuels. He has designed a new member of
the alcohol family called Cooganol. Cooganol has 130% of the
energy content of gasoline and no modifications are necessary to
vehicles in order to use it. Cooganol is made from recycled
beer bottles, peanut shells and lake weeds. Trials have been
conducted demonstrating that a scale up of the manufacturing process
would enable production of this fuel at a cost of
$1.20/gallon. All ingredients are in plentiful supply in
Madison, but Dr. Cohall lacks a building and tanker trucks to transport
his product. Dr. Cohall has commitments from the City of
Madison for a tax incremental district (TID), worth $200,000,
contribution from his own funds of $100,000, and bank financing of
$500,000. Cooganol has a letter of intent from a chain of
convenience
stores to buy 2,000,000 gallons of the product, and has a significant
number of additional strong customer prospects. He will
initially be hiring 10 new employees, with expected employment of 50 in
two years. Cooganol, LLC is requesting $150,000 from the Wisconsin Energy Independence Fund for
equipment purchases.
- Two
former UW-Stout professors, Dr. Susan Hartz and Dr. David Jenks have
successfully created and demonstrated a single step process that can
generate ethanol from a variety of waste streams. The two
doctors formed E-magine, LLC in 2007. E-magine's patent
pending technology converts paper mill sludge and food processing waste
into ethanol. Small scale laboratory trials have shown
production of this fuel can be accomplished at a cost of $.98/gallon,
and two national chains have agreed to purchase the final product for
distribution. E-magine expects to create 25 high-paying jobs
within three
years. E-magine has already secured $600,000 in venture
capital and $600,000 from a Menomonee bank, and is contributing
$300,000 in founder's equity for the purchase of a 50,000
square foot building in Menomonee. E-magine is requesting a
$200,000 loan from the Wisconsin Energy Independence Fund to assist in
the the purchase of two 20,000 gallon stainless steel processing tanks.
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