Well, just when you think the federal government can't do anything at all right, ever, they flip you a hundred large for your pet project. I'm still getting details on how and when and where this all comes together, but the award has definitely been made.
Yay for filling out lots and lots and lots of paperwork!
This came from the grant writer that helped us a little while ago:
AREA PRODUCER GROUP AWARDED $100,000 USDA VALUE ADDED
PRODUCER GRANT (Press Release for Northwest Iowa)
Agriculture Secretary Ed Schafer recently announced the selection of USDA award recipients. Among the 9 successful Iowa applicants is a group of local northwest Iowa independent agricultural producers. Ten individuals, known as Winds of Change, joined together as a steering committee this spring and received $100,000 in planning funds from the USDA Value Added Producer Grant program. Funds will be used to complete a feasibility study that will determine the economics of using Iowa’s wind to create
anhydrous ammonia. This group, lead by Steve Gruhn, owner of Iowa Great Lakes Nursery and Floral Ltd. in Spirit Lake has been researching the concept which they believe holds great potential and tremendous economic impact in the search for clean, renewable energy.
Versatile anhydrous ammonia (NH3) is produced through a chemical reaction that combines one atom of Nitrogen with three atoms of Hydrogen. The goal of this project is to add value to the wind to create renewable energy. This venture will bring several technological processes together to determine, using the information gleaned from the feasibility studies, whether this venture can economically produce and market NH3 made from wind. The funds will help Winds of Change complete the due diligence required for this venture. They plan to demonstrate the feasibility and economics, create a new market for wind resources, lessen demand for foreign oil, improve the environment and promote "green" technologies. PlanScape Partners of Clear Lake, Iowa completed the successful grant application.
Applications were due in March 2008 and 144 applicants in 37 states will collectively receive $19.7 million in USDA Rural Development grant assistance. "With these grants, USDA is investing in farmers and ranchers and the economic integrity of rural America" said Sec. Schafer. Additionally these funds will provide for the further development of renewable energy sources."
So ... what happens next is a little fuzzy to me, as this is our first USDA grant, but we're going to build on the work already being done for the project in Niagara Falls.
(UPDATE:
OK, here's the scoop, we need $100k from farmers, which is easily obtained in the state of Iowa, and then we have $200k total to spend on business planning operations. The Winds of Change group mentioned above benefited from the technical assistance of the usual suspects from the Stranded Wind Initiative and they're going to own the final ammonia plant, assuming it actually gets built. I get no stock in this one but it's paying work for the next many months for me and several others who've sweated over their keyboards making all this stuff move.
Plenty more where this came from - if you're an ag producer and you're smarting over ammonia's price tripling in the last two years we'd like to hear from you :-)
)