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Wisconsin Energy Independence Fund
Supply Chain Development Projects
Loans
for projects that increase the use and cost-effectiveness of clean
energy, by decreasing market barriers to adoption or developing clean
energy infrastructure, including the storage, transportation,
transmission, and distribution of clean energy.
Awards
will target projects that:
- eliminate or
reduce market barriers to adoption of clean energy sources;
- have
high market penetration potential; and
- support
clean energy sources with a competitive cost structure to existing
non-clean energy source options.
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.
In
limited cases, justification subject to Commerce approval, the award
may be in the form of a grant.
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 Supply Chain Development Projects
- In
order to establish a hydrogen fuel infrastructure in Wisconsin, fuel
stations will have to be established and strategically placed around
the state to serve cars that run on hydrogen fuel. A main
barrier to hydrogen fuel stations has been the lack of a specialized
pump
nozzle to dispense hydrogen fuel into vehicles. Early tests,
using conventional nozzles resulted in serious frostbite on the hands
of volunteers who tested the pumps. Since liquid hydrogen has
a temperature of -350 F, the volunteers recommended a different kind of
nozzle. As a result of the tests, Hydro-Grabber Co. will
produce and install 20 specialized insulated nozzles for testing around
the
state. Hydro-Grabber has identified potential customers, and
is investing over $500,000 in specialized equipment at its rental
facility
in West Allis. It is applying for $100,000 from the Wisconsin
Energy Independence Fund to cover costs to
install and monitor the test nozzles.
- In
most dry mill ethanol plants (such as all of those in WI), the use of
water is significant environmental concern. Wet mill plants
use 500 gallons per
hour (fictitious number) of water. Hydro Loop, Inc., a
startup
company in Green Bay, has designed a new, simple water
recycling/reclamation
system for ethanol plants that reduces water use to 500 gallons per
week. The product has been tested extensively and has been
successfully used at an ethanol plant in Smallville, for 6
months. Hydro Loop is applying to the Wisconsin Energy Independence
Fund for a $400,000 loan to install the system at seven Wisconsin
ethanol
plants who will match this loan on a 6-1 basis.
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