TRENTON, N.J. (Jan. 16, 2013) – In support of the Christie Administration’s commitment to a greener and more affordable use, management and development of energy in the state, the New Jersey Economic Development Authority (EDA) and the New Jersey Board of Public Utilities (BPU) today launched the second iteration of the Large Scale Combined Heat and Power (CHP)/Fuel Cell Program.  The rolling grant program, which follows a competitive program introduced last April, will support CHP and standalone fuel cell projects serving commercial, institutional and industrial customers in New Jersey. 

“By increasing energy efficiency for businesses and reducing energy costs for all New Jersey ratepayers, this program represents a win-win for New Jersey’s economic and environmental future,” said EDA Chief Executive Officer Michele Brown.  “The six projects approved under the competitive program will not only create hundreds of new construction jobs and leverage more than $67 million of total investment in New Jersey’s economy, but also will reduce carbon dioxide emissions by 85,695 tons annually.”

The rolling grant program launched today is available to support CHP or standalone fuel cell projects with an electric generating capacity of greater than one megawatt (MW).  New Jersey-based government (federal, state or local), commercial, institutional or industrial entities advancing these projects are eligible.  CHP systems greater than one MW with waste heat utilization must achieve annual system efficiency of at least 65 percent of the lower heating value; fuel cell projects greater than one MW without heat recovery must achieve annual system efficiency of at least 45 percent of the higher heating value. 

“The BPU is committed to support CHP/Fuel Cell projects as outlined in Governor Christie’s Energy Master Plan. These on-site power generation technologies increase energy efficiency and reduce demand on the electric grid,” said Bob Hanna, President of the New Jersey Board of Public Utilities.  “As was evident during Hurricane Sandy, businesses and institutions that have invested in CHP have solid advantages during power outages.”  

Grants through the program will be awarded under a tiered incentive structure based on the system size and amount of electricity that the project generates, with a maximum award of $3 million per project.  Total state and/or federal funding cannot exceed 50 percent of the total project cost.  Funding can be used for project-specific, fixed asset purchases.  The tiered incentive structure is as follows:

CHP Projects

Greater than 1 MW to 3 MW                      $0.55 per watt

Greater than 3 MW                                      $0.35 per watt

Maximum Incentive                                     $3 million

Maximum Percent of Project Cost           30%

Fuel Cell Projects

Greater than 1 MW                                         $2.00 per watt

with Waste Heat Utilization

Greater than 1 MW                                         $1.50 per watt

without waste heat utilization

Maximum Incentive                                        $3 million

Maximum Percent of Project Cost              45%

The EDA will accept program applications beginning January 16, 2013. There is a two-part application process for this open solicitation: applicants must first complete a technical application; if found to be technically eligible, the EDA’s standard online application must then be completed.  Both applications can be accessed via www.njeda.gov/lschp-fc. In addition to the online submission, applicants should send two copies of requested documentation on a CD-Rom or USB flash drive to the following address: 

Large Scale CHP-Fuel Cells Application

New Jersey Economic Development Authority

36 West State Street

P.O. Box 990

Trenton, NJ 08625 

All complete applications meeting technical requirements will be reviewed and scored on a first come, first serve basis. Those applications meeting the minimum score requirement will subsequently undergo financial and business due diligence.  Questions regarding this solicitation should be submitted to lschp-fc@njeda.com. 

 To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.

Enhanced Venture Capital Growth Fund Recognizes Value of Strategic Investors

TRENTON, N.J. (Jan. 15, 2013) – Emerging technology and life sciences companies that have attracted capital through strategic investments will now be eligible for assistance through the Edison Innovation Venture Capital Growth Fund.  This enhancement further supports Governor Chris Christie’s commitment to technology-led entrepreneurial development by recognizing the value and increasing use of nontraditional investors in the marketplace.  

Administered by the New Jersey Economic Development Authority (EDA), the program was created in 2011 to benefit early stage, emerging technology and life sciences companies by providing growth capital to directly fund uses such as hiring key staff, product marketing and sales.  The program, which provides a subordinated convertible note of up to $1 million for eligible companies, previously included a 1:1 matching requirement only satisfied by venture capital funds.  The program now allows strategic investments, which can be made by a variety of sources, including commercial or institutional entities, nonprofit organizations or universities, to also be eligible. 

“The EDA’s goal is to ensure our programs are meeting the needs defined by the marketplace, and this enhancement supports the fact that strategic investors have become more and more attractive to emerging companies,” said EDA Chief Executive Officer Michele Brown.  “The Christie Administration has placed a high importance on nurturing the growth of our technology and life sciences companies, and this program now recognizes the unique advantages strategic investors offer New Jersey’s early stage businesses.” 

At the EDA’s Board meeting today, EDA President and Chief Operating Officer Tim Lizura outlined the benefits of nontraditional investors.  This includes a more diverse investment strategy beyond solely financial return and a greater potential for follow-on funding.  Lizura noted that strategic investors have increasingly become more attractive to emerging companies as they often bring industry expertise in addition to liquidity, access to a more robust customer base, validation to the technology or product and opportunities for operating partnerships. Assistance through the Edison Innovation Venture Capital Growth Fund was approved at today’s EDA Board Meeting. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes. 

Consistent with the current process, due diligence interviews will be completed with strategic investors. This entails the collection of important information including the size of the fund, percentage of the total fund committed to date, potential for follow-on funding, and a background review of the company’s management.  Strategic investors will be required to be unrelated, arms length investors, without any common ownership.   

To be eligible for the program, New Jersey-based companies must have minimum trailing 12 month commercial revenues of $500,000, derived from core business activities, such as the sale of technology products. Companies also must be the developer or owner of protected proprietary technology.   

For more information on the Edison Innovation Venture Capital Growth Fund, visit www.njeda.gov.   To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.