CHP/Fuel Cell Grant Program Launched in New Jersey

22 Jan 2013

The New Jersey Economic Development Authority (EDA) and the New Jersey Board of Public Utilities (BPU) have 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. 

The rolling grant program 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 1 MW with waste heat utilization must achieve annual system efficiency of at least 65% of the lower heating value (LHV); fuel cell projects greater than 1 MW without heat recovery must achieve annual system efficiency of at least 45% of the higher heating value (HHV).

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% of the total project cost. Funding can be used for project-specific, fixed asset purchases. 

The tiered incentive structure is as follows:


CHP Projects

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  (with waste heat utilization): $2.00 per watt

Greater than 1 MW (without waste heat utilization): $1.50 per watt

Maximum Incentive: $3 million

Maximum Percent of Project Cost: 45%


“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 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.” 


For details on how to apply, see the New Jersey Economic Development Authority press release here.

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