USDA Approves $25M Loan Guarantee For California Biomass Gasification Project

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The USDA has announced it will provide a $25 million loan guarantee under the Rural Development Timber Production Expansion Program (TPEP) to finance a 3 MW biomass gasification project in California under development by Blue Mountain Electric Co. LLC to convert forestry biomass waste into synthetic natural gas through the process of thermochemical conversion. 

The total project cost is estimated at $42.2 million. According to USDA, the loan guarantee will support construction of the facility and provide working capital for operating expenses during the first year. 

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The loan guarantee for Blue Mountain Electric’s proposed project is one of 12 projects that will share in $115.2 million awarded by the USDA on March 23 through TPEP, which aims to ensure sawmills and other wood processing facilities have the necessary funding to establish, reopen, expand, or improve their operations.

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