Maryland Offers $4M in Combined Heat and Power Grants

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Credit: Maryland Energy Administration

The Maryland Energy Administration is now accepting applications for combined heat and power grants to be used by industrial and critical infrastructure facilities.

The state plans to make $4.025 million available for CHP installations. Of that $1.525 million will go toward industrial CHP, $1.5 million for critical facilities and $1 million for CHP that uses biomass or biogas.

Grants will range from $425/kW to $575/kW, based on the size of the CHP system, with a maximum per project cap of $500,000.

To be eligible, projects also must be located in Maryland and be ready for an official groundbreaking by January 1, 2017. The CHP system efficiency must be at least 60 percent on a Higher Heating Value (HHV) basis.

The state will disperse up to 30 percent of the grant award after it verifies that the project broke ground. After the system is commissioned, the state will release the remainder.

Maryland is encouraging the use of biogas and biomass fuels, but will consider CHP systems that generate power with natural gas or other fossil fuels. A range of technologies are eligible, including reciprocating engines, turbines, microturbines, fuel cells, and back-pressure steam turbines. The waste heat must be captured for on-site use.

Grants are available only to facility owners, not CHP developers. However, facility owners may choose to partner with developers.

The rolling application process will run through Feb. 1, 2016. The state expects to begin announcing winners in January and execute grants in May. Projects must be in operation by Jan. 1, 2018.

Michael Leslie, MEA clean energy CHP and C&I program manager, noted that CHP systems offer the advantage of driving down operational  costs and enhancing resiliency.

“Additionally, by insourcing our electric supply instead of importing it, all Marylanders have the opportunity to benefit from this technology as commissioning new CHP systems provides economic development, job creation, and significant environmental benefits,” he said.

See the MEA website for more information. Or contact Michael.Leslie@Maryland.gov. Leslie also will also provide details about the CHP grant program in a webinar from 1:30 to 2:30 PM ET, Wednesday, November 11.

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Elisa Wood About Elisa Wood

Elisa Wood is the chief editor of MicrogridKnowledge.com. She has been writing about energy for more than two decades for top industry publications. Her work also has been picked up by CNN, the New York Times, Reuters, the Wall Street Journal Online and the Washington Post.

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