FOR IMMEDIATE RELEASE

Contact: Don Canton or Don Larson

(701) 328-2200

Hoeven Announces $500,000 USDA Grant to Northwood Mills to Develop Biodiesel Production Plant

BISMARCK, N.D. – Gov. John Hoeven today announced that Northwood Mills LLC, a soybean crushing facility located near Northwood, N.D. has been awarded a $500,000 USDA grant to develop a biodiesel production plant next to their soybean crushing facility. The grant is funded through the USDA Renewable Energy and Energy Efficiency program which works to increase energy independence through the development of renewable energy resources especially in rural America.

“Value-added agriculture and energy are two of our targeted industries for North Dakota,” Hoeven said. “Production of biofuels creates new jobs, helps our farmers add substantial value to their crop and contributes to our overall plan to develop all of our state’s energy resources. It’s good for our farmers, good for our environment and good for our economy.”

Hoeven worked with industry leaders and the Legislature in the last session to pass a number of incentives to attract biodiesel facilities to the state. These include, among others:

·        A $1.2 million Biodiesel PACE program, which will provide up to $650,000 in interest buy-down for a biodiesel plant, by providing $400,000 with $250,000 in regular PACE.

·        An income tax credit of 10 percent per year for up to 5 years, or 50 percent of direct costs, for biodiesel sales equipment, such as pumps, hoses and tanks purchased by retailers.

·        An income tax credit for any fuel supplier that blends biodiesel fuel to the ratio of 5 percent, or B5. The credit equals five cents per gallon of fuel blended.

·        A sales tax exemption on the sale of new equipment to any facility that will enable the facility to sell diesel fuel containing at least 2 percent biodiesel fuel.

·        Reduced fuel tax on biodiesel fuel sold in North Dakota to stimulate industry growth.

The USDA Renewable Energy and Energy Efficiency program also funded a grant of more than $100,000 to Verendrye Electric Cooperative in Velva. The funding will be used to purchase solar panels to power pasture wells that are not easily reached by power lines.

Other North Dakota companies receiving grants through the program include $4,500 for Tublicks in Wyndmere and $8,000 for Jans Stall Mall & RV Park in Leeds.

-###-