Xcel Energy handing out $23M in cleantech grants

Minneapolis, Minn.-based electric and gas utility Xcel Energy (NYSE: XEL) announced that 22 renewable energy projects were selected to receive $23 million from the company's Renewable Development Fund.

The company said an advisory board with representation from Xcel Energy, environmental groups, Xcel Energy customers and the Prairie Island Indian Community recommended to the Minnesota Public Utilities Commission that $8.2 million be awarded to projects for energy production and $14.4 million for research and development.

All selected projects are subject to final approval by the Minnesota Public Utilities Commission.

"The fund's objective is to remove barriers to entry of new renewable energy technologies by funding research on emerging technologies and supporting development of renewable energy projects," said Scott Wilensky, Xcel Energy's acting VP of regulatory and government affairs.

The company said cash for the Renewable Development Fund, which was created in 1999, comes from Xcel Energy customers. Each year the company transfers $16 million to the fund in accordance with state statute.

To date, Xcel Energy has committed to funding nearly $53 million for projects, with more than 23 megawatts of renewable energy under development from fund initiatives.

Owners of energy production projects sell the energy to Xcel Energy or use the energy themselves.

Xcel Energy said the projects in this round feature wind, hydroelectric, solar, biomass and biofuel technologies.

Some of the research and development projects are located outside of Xcel Energy's home state, but all of the energy generation proposals are in Minnesota, including American Crystal Sugar's plan to build a 3 MW electricity cogeneration plant utilizing methane in Moorhead, Minn.