American Municipal Power will receive $20 million in Clean Renewable Energy bonds to build a 44-MW run-of-the-river hydroelectric plant at the Willow Island Locks and Dam on the Ohio River.
The $276 million project near Waverly, W.V., is expected to begin commercial operations in 2014 and will create up to 400 jobs during the peak of construction.
The federal bonds program is designed to help renewable energy developers access lower-cost credit for renewable energy projects. The bonds are tax-credit bonds, which means the company does not pay full interest. Instead, the federal government provides the company a tax credit covering 70 percent of the interest earned.
The Willow Island project is one of five hydroelectric projects AMP plans to build on the Ohio River. Earlier this year, the company broke ground on the first project at the Cannelton Locks and Dam near Hawesville, Ky. (HydroWorld 8/7/09)