Washington, DC - Congressman Maurice Hinchey (D-NY) this week spoke with United States Department of Energy (DOE) Secretary Steven Chu in support of the final approval for a significant loan guarantee for Taylor Biomass Energy, LLC based in Montgomery, New York. The company, which has put together more than $20 million in private investment, is seeking $98.6 million in innovative energy technology loan guarantees in order to move forward with its proposal to construct the first in the nation commercially-sized biomass gasification facility that utilizes municipal solid waste (MSW) to produce electricity.  The construction phase of the project would create 400 new local jobs, while the operation of the plant would allow the company to add 80 full-time local positions.

"Taylor Biomass has created a clean and innovative technology that uses municipal solid waste to generate electricity," said Hinchey. "The company is hoping to move forward with the first-ever commercial use of this technology by constructing a facility that will produce over 24 megawatts of renewably-generated electricity, capable of powering over 20,000 homes. The project will create 400 construction jobs and 80 full-time, long-term positions to operate the plant. Since projects like this face large upfront capital costs, the company needs substantial loan guarantees from the Department of Energy to attract sufficient financing to complete this large project. This week, I asked Secretary Chu to give final approval for Taylor's application for loan guarantees because this is a critically-important project that will benefit the Hudson Valley's economy and environment as well as set the stage for the use of this new technology throughout the country."

The loan guarantee program is funded through the American Recovery and Reinvestment Act of 2009, which Hinchey strongly supported and voted for in order to preserve and create well-paying jobs, promote local and state fiscal stabilization, and accelerate the development of renewable energy technologies that could be replicated in other areas of our country.  Taylor Biomass' proposed biomass gasification facility enjoys broad and enthusiastic support from the community. In addition to creating local jobs, the plant would also help to increase the revenues of the Town of Montgomery, County of Orange, and the State of New York and provide significant positive direct and indirect economic impacts.

Taylor Biomass Energy submitted the first part of its application for the loan guarantee in September of 2009. After receiving approval for the initial application, the company submitted the second phase of the application in January 2010. In addition to the federal loan guarantee, the company will also be entitled to receive a 30 percent federal tax credit made available for renewable energy projects once it begins its generation of electricity.

Taylor Biomass Energy has previously received funding for this project through the New York State Energy Research and Development Authority (NYSERDA) and has worked diligently with local and state agencies to move this important initiative forward.  Taylor's current operation, in which the company recycles the large percentage of the construction and demolition debris it accepts, demonstrates the company's innovative approach to waste management and its longtime commitment to environmental sustainability.

This week's phone call between Congressman Hinchey to Secretary Chu follows a letter sent in September 2009 to the secretary in support of the loan guarantee application.  The Congressman also toured the Taylor Recycling facility in Montgomery in 2008 with senior biomass staff at the Department of Energy.