The Maryland Energy Administration (MEA) has opened up its Combined Heat and Power Grant Program for the 2019 fiscal year. The program was put together to facilitate further growth of combined heat and power (CHP) in Maryland. The program will target commercial, industrial, institutional, and critical infrastructure facilities (including healthcare, wastewater treatment, and essential state and local government facilities). Grants under this program will be awarded on a first come, first served basis.
The program’s available budget is $4,000,000, allocated among three areas of interest (AOIs). Up to $2,500,000 will be reserved for energy efficiency projects in institutional, industrial and commercial facilities. Up to $1,500,000 will be reserved for energy efficient projects that increase resiliency in infrastructure facilities. Up to $500,000 will be reserved for projects utilizing biomass or biogas resources as a fuel source.
$3,500,000 of the budget is reserved for projects in PEPCO and Delmarva Power territories, while the remaining $500,000 is reserved for projects outside of those territories. Award values will range from $425/kW to $575/kW, depending on the size of the applicable system, with a $500,000 project cap. Awards for fuel cell technology and non-combustion CHP will be limited to $1,000,000 of the total program budget for all AOIs.
Minimum eligibility requirements are that the CHP project must:
- Be located in the state of Maryland at an eligible facility;
- Have materials onsite and official groundbreaking must happen by July 1, 2020;
- Be installed and fully commissioned by July 1, 2021;
- Have anticipated annual CHP system efficiency of at least 60%, on a higher heating value based on the higher heating value of the fuel, or an eligible non-combustion fuel cell system must meet a minimum system efficiency of 50% based on a higher heating value of the fuel; and
- Satisfy all applicable regulatory and environmental requirements.
The application deadline for these program grants is February 15, 2019 with award announcements expected to be made March 30, 2019. Agreements are expected to be signed in April 2019.
If you are interested in learning more about Maryland’s Combined Heat and Power Grant Program and whether you may benefit from them, you can contact Brian Meltzer or any other member of our Energy Sector team.