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MINNEAPOLIS--(BUSINESS WIRE)--

Twenty-two proposed renewable energy projects featuring wind, hydroelectric, solar, biomass and biofuel technologies have been selected to receive nearly $23 million from the Xcel Energy (NYSE:XEL) Renewable Development Fund.

An advisory board with representation from Xcel Energy, environmental groups, Xcel Energy customers and the Prairie Island Indian Community today recommended to the Minnesota Public Utilities Commission that $8,223,922 be awarded to projects for energy production and $14,397,817 for research and development.

Nearly 100 renewable energy proposals were reviewed during the current funding cycle. In previous cycles, more than $52 million has been awarded for renewable energy research and renewable energy production. Currently, more than 23 megawatts of renewable energy are under development from fund initiatives.

"Innovative and new renewable technologies, such as solar and biomass, have trouble competing with conventional energy in the marketplace," said Scott Wilensky, Xcel Energy acting vice president of regulatory and government affairs. "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."

Money 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. Owners of energy production projects sell the energy to Xcel Energy or use the energy themselves. All selected projects are subject to final approval by the Minnesota Public Utilities Commission.

"The Renewable Development Fund provides research support for marketable advancement of innovative renewable energy and environmental technologies that will benefit Minnesota customers as well as promote renewable energy within the region, nationally, and worldwide," said Bill Grant, associate executive director, Izaak Walton League, and Renewable Development Fund advisory board member.

"This round of grants appropriately focuses on the goal of making solar and biomass resources more cost-effectively available for Xcel Energy customers, which is entirely consistent with our state energy policy goals," said Mike Bull, assistant commissioner of renewable development and advanced technologies, Minnesota Department of Commerce, and Renewable Development Fund advisory board member.

    Energy Production Projects (locations denote project site):

    --  American Crystal Sugar Co., Moorhead, Minn., to design,
        develop and construct a 3-megawatt electricity cogeneration
        plant utilizing methane, which currently is produced as a
        result of sugar beet processing. The cogeneration facility
        will be integrated with the company's current biogas
        collection system, $2 million.

    --  Freenerg, Minneapolis, to demonstrate the commercial viability
        of providing solar-generated electricity for homes based on a
        leasing and service package of rooftop solar panels connected
        to the grid. The program will use 50 solar generating systems
        at 5.6 kilowatts each, $1,488,922.

    --  City of Minneapolis and EyeOn Energy Ltd., Minneapolis, will
        install up to 600 kilowatts in direct current of photovoltaic
        PV panels on the roof of the city's Currie Equipment Facility.
        The system is projected to include at least 3,000, 200-watt
        panels, $2 million.

    --  Merrick Inc., Vadnais Heights, Minn., to connect a
        100-kilowatt solar photovoltaic array capable of generating
        125,000 kilowatt-hours annually to an existing geothermal
        heating and cooling system, $735,000.

    --  Outland Renewable Energy LLC, Chaska, Minn., to co-locate a
        2-megawatt solar power plant in Cottonwood County in
        southwestern Minnesota with its 50-megawatt wind energy
        production facility currently being developed, $2 million.

    Research and development projects (locations denote research
site):

    --  University of North Dakota, Grand Forks, N.D., to test and
        develop a novel biotechnology additive to convert biomass into
        biogas, $970,558.

    --  University of Minnesota, Minneapolis, to evaluate and address
        economic and technical issues related to biomass integrated
        gasification combined cycle technology in electricity
        generation at ethanol-producing plants, $819,159.

    --  Coaltec Energy USA Inc., Carterville, Ill., to prove the
        feasibility of biomass gasification (using turkey manure and
        agricultural waste) in a commercial turkey farm setting to
        generate electricity and heat, $1 million.

    --  University of Minnesota, Morris, Minn., to provide biomass
        fuel stock suppliers with accurate guidelines for management
        of biomass harvesting and maintenance of soil quality,
        $979,082.

    --  University of Minnesota, Minneapolis, to develop an efficient
        system for the production, pre-processing and delivery of
        biomass feedstock for energy production that minimizes
        feedstock cost for energy facilities, while maximizing
        landowner income and the environmental benefits of biomass
        production, $992,989.

    --  Community Power Corp., Littleton, Colo., to adapt current
        proven modular biopower technology to produce and demonstrate
        a biomass/natural gas hybrid (dual fuel) power generation
        system. The system will integrate with on-site electrical and
        thermal loads to deliver electricity and heat, $999,926.

    --  University of North Dakota, Grand Forks, N.D., to demonstrate
        the performance of a mobile integrated indirect wet biomass
        liquefaction system gasifier at one-fourth commercial scale,
        $999,065.

    --  Minnesota Valley Alfalfa Producers, Raymond, Minn., to
        research the application of a new energy-efficient technology
        to process a variety of biomass feedstock to expand the
        resource options for biomass energy production, $1 million..

    --  Bepex International LLC, Minneapolis, to examine, evaluate and
        reduce the capital and operating costs of utilizing a
        thermo-chemical biomass pretreatment regime, called
        "torrefaction." Biomass used will be corn stover with the
        resulting product densified into briquettes for electricity
        generation, $924,671.

    --  University of North Dakota, Grand Forks, N.D., to develop an
        economical biomass power system by combining previous bench
        scale work in thermally integrated gasification systems with
        developmental work on a low-Btu gas turbine, $999,728.

    --  Northern Plains Power Technology, Brookings, S.D., to make
        specific recommendations for changes to codes, standards and
        test procedures to enable the use of harmonic-based loss of
        mains detection, $493,608.

    --  InterPhases Research, West Lake Village, Calif., to develop a
        photovoltaic technology that offers potential for extremely
        low cost and high volume production of thin-film, flexible
        cell modules, $1 million.

    --  University of Minnesota, Minneapolis, to develop a new
        paradigm for controlling the microstructure of thin-film
        silicon, which will improve stability, efficiency and lower
        the cost of nanocrystal silicon photovoltaic cells, $732,032.

    --  SarTec Corp., Anoka, Minn., to use solar energy,
        photosynthesis and rapid growth algae to capture carbon
        dioxide from flue gas and produce lipids that can be
        transformed into the renewable biodiesel fuel, $350,000.

    --  University of Minnesota, Minneapolis, in sponsorship with
        Prairie Island Indian Community, to develop and test a high
        resolution Virtual Wind Simulator for accurate prediction of
        local wind and turbulence with the purpose of optimizing the
        turbine siting design of wind energy projects, $999,999.

    --  Xcel Energy, Minneapolis, to test the hypothesis that battery
        storage technology will enable effective storage of wind
        energy, and therefore enable "firming" of wind energy to
        reduce impact from the variability and limited predictability
        of wind generation resources, $1 million.

    --  West Central Telephone Association, Sebeka, Minn., to
        determine the ideal system configurations and specifications
        to use renewable energy solutions for its landline telephone
        switching nodes by testing five different small wind/solar
        hybrid back-up power systems, $137,000.

Detailed information on the projects selected is available on Xcel Energy's Web site at www.xcelenergy.com/rdf

Xcel Energy is a major U.S. electricity and natural gas company with regulated operations in eight Western and Midwestern states and transmission facilities in 10 states. Xcel Energy provides a comprehensive portfolio of energy-related products and services to 3.3 million electricity customers and 1.8 million natural gas customers through its regulated operating companies. Company headquarters are located in Minneapolis. More information is available at www.xcelenergy.com.

Source: Xcel Energy