Government Grants



Government grants, including those described below, may be available to you algae biofuels project.  Please note these opportunities are current through August 12, 2009 and may not include all federal grants that may be available to your algae biofuels project.

Algae Consortium

On July 16, 2009, the DOE announced funding of up to $85 million over a three-year period for the development of algae-based biofuels and advanced, infrastructure compatible biofuels.  Applicants must be part of a consortium and will have to provide a 20 percent cost-share from nonfederal funds.  Applications are due September 14, 2009.  Please see “Show Me the Money – Biofuels Industry” written by Janet Jacobs, Dina Dubson, John Laney, Graham Noyes, David Benson, and the author for more information on this program. 

State Energy Program 

ARRA provided $3.1 billion for the State Energy Program, a flexible federal-state partnership implemented by state energy offices to provide additional funds that do not need to be matched by state funds, allowing the states to leverage federal funds to match state, local, and private efforts for funding energy efficiency, renewable energy, and a wide variety of energy measures.  Each state has been awarded a pro rata share of the funds on the basis of its share of total electric consumption.  Funds under this program are intended to be available only to states that intend to adopt strict building energy codes and incentivize utilities to adopt energy efficiency measures.  Many states rolled out their programs to utilize the monies during May and June 2009.  Please see “Show Me the Money – Biofuels Industry” written by Janet Jacobs, Dina Dubson, John Laney, Graham Noyes, David Benson, and the author for more information on this program.  

Advanced Research Projects Agency – Energy 

ARRA also provides the Advanced Research Projects Agency – Energy with $400 million to support innovative energy research that could include biofuels projects.  There are no current funding opportunities under this program.  Please see “Show Me the Money – Biofuels Industry” written by Janet Jacobs, Dina Dubson, John Laney, Graham Noyes, David Benson, and the author for more information on this program.

Rural Energy for America Program

REAP provides funding for energy audits, feasibility studies, rural energy efficiency projects, or rural renewable energy production.  Grants under this program may fund up to 25 percent of project costs (capped at $500,000), and loan guarantees may fund up to 75 percent of project costs (capped at $25 million).  There are no current funding opportunities available under this program.  The Biorefinery Assistance Program provides assistance in the development, construction, and retrofitting of biorefineries.  Demonstration scale biorefineries are eligible for grants and loan guarantees, while commercial scale biorefineries are solely eligible for loan guarantees.  Federal grants can provide up to 30 percent of project costs, and federal guaranteed loans can provide up to 80 percent of project costs.

Bioenergy Program for Advanced Biofuels 

The Bioenergy Program for Advanced Biofuels provides payments to agricultural producers of feedstocks for advanced biofuels. Facilities that exceed total refining capacity of 150 million gallons per year are able to receive only 5 percent of these funds.


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