10/4/24 Tobacco Commission Approves Funding For Four Energy Projects

Virginia Tobacco Region Revitalization Commission

TOBACCO REGION REVITALIZATION COMMISSION APPROVES FUNDING FOR FOUR ENERGY PROJECTS

PROJECTS IN RICHLANDS, WYTHEVILLE, AND DANVILLE RECEIVE COMMISSION SUPPORT

At its final scheduled meeting of the year, in Martinsville on September 26th, the Tobacco Region Revitalization Commission approved funding for four energy projects that will benefit communities across Southern and Southwest Virginia.

The Commission voted to approve the allocation of $4,000,000 ($2M grant, $2M loan) for the Town of Richlands Energy Diversification Project.

To address rising energy transmission costs, the Town of Richlands needs to diversify its energy assets. With Commission assistance, the Town is moving forward with the purchase of a Solar Mercury 50 natural gas fired turbine and generator. This generator will allow the Town to utilize a homegrown supply of natural gas to create and provide electricity to its citizens and businesses. The system will also serve as an economic development tool for attracting prospective businesses and other economic development projects that require a stable, affordable source of energy.

Vice-Chairman of the Tobacco Commission, Delegate Will Morefield said, “The impact of Hurricane Helene on Southwest Virginia has highlighted the importance of reliable sources of energy for our rural communities. We have a tradition of self-reliance in Southwest Virginia, and projects like the one approved in Richlands will allow this community to provide affordable and reliable energy to its businesses and residents for decades to come. This project will also develop natural gas pipeline infrastructure in the region and one day give residents the opportunity to use natural gas that is produced right here in Southwest Virginia. I am also pleased the Commission approved a number of other projects across the Commission footprint that will support innovative energy solutions and help us meet the energy challenges of today and tomorrow.”

“I applaud the forward-thinking leadership of the Town of Richlands for identifying this innovative project that seeks to address the rising energy costs that impact every resident of the town,” said Tobacco Commission member, Senator Travis Hackworth. “I thank my fellow Commission members for recognizing the importance of this project and voting to approve the funding necessary to move forward. Cutting edge energy solutions are vital to the success of Southwest Virginia, and I believe we are on a good path right now to seeing one such solution realized.”
Additional energy projects approved at the Commission meetings in Martinsville include:

City of Danville 900 Mount Cross Road Battery Energy Storage System
$750,000 Grant/$750,000 Loan
This award will assist with the continued development of a 12-megawatt advanced battery energy storage system (“BESS”) in Danville, Virginia, that will be used to reduce peak load for Danville Utilities and will in turn save Danville Utilities tens of millions of dollars over the life of the project. These savings will be directly passed through to the commercial, industrial, and residential customers of Danville Utilities, helping ensure lower electricity costs for current and future residents as well as attract new businesses to the Tobacco Region. The project will also enable workforce training for the emerging BESS industry in Virginia, which has been catalyzed by the Virginia Clean Economy Act, and the project will provide emissions reductions benefits and reduced transmission and generation requirements for the regional grid, as well as a clean source of local power for Danville Utilities.

Town of Wytheville Energy Action Plan
$50,000 Grant
This award will assist with the creation of a Community Energy Action Plan. The plan will study all town-owned facilities to identify solutions that increase energy efficiency, sustainability, and resilience. By aligning energy improvements with the existing Capital Improvement Plan, Wytheville aims to reduce operating costs, hedge against future energy price volatility, and attract energy-dependent businesses.

ATIP Foundation, LLC ATIP Foundation/BargerTech Waste to Energy Demonstration Project
$1,000,000 Grant
This award will support ATIP Foundation, in partnership with the private firm BargerTech, with the design, engineering, construction, implementation, and operation of a Biomass converter (specifically, a TriFi 7000 unit) on location at a farm within the Tobacco Region Revitalization Commission territory. This demonstration project processes dairy manure to produce multiple valuable outputs including electricity (1MW), distilled water, biochar, and carbon credits.
About The Tobacco Region Revitalization Commission

The Tobacco Region Revitalization Commission is a 28-member body created by the 1999 General Assembly. Its mission is the promotion of economic growth and development in tobacco-dependent communities, using proceeds of the national tobacco settlement. To date, the Commission has awarded over 2000 grants totaling more than $1.1 billion across the tobacco region of the Commonwealth, and has provided $309 million in indemnification payments to tobacco growers and quota holders.

The Tobacco Region Revitalization Commission is an economic development agency under Governor Youngkin’s Secretariat of Commerce and Trade, led by Secretary Caren Merrick. TRRC’s Executive Director, Hon. James E. Campos, is appointed by the Governor.

www.revitalizeva.org