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Biodigester grants now in jeopardy

By Mike Williscraft
NewsNow

While the provincial government has rejected a grant submission for Grimsby’s biodigester, the Town has approved a full guarantee for the project’s price tag for construction.

At council’s meeting Monday, a $4.5 million loan guarantee was approved for the Grimsby Energy project being bulit on Sobie Road.

“We’re trying to convince the province to reverse,” said Ald. Steve Berry, adding provincial officials rejected the application saying they have done their share by buying the hydro generated through the FIT (Feed-In Tariff) program already.

The 20-year FIT contract will generate about $20 million for the Town. Hydro officials have not released an operating budget for the biodigester project.

Niagara West Glanbrook MP Dean Allison said the delays caused by the province rejecting the grant application have jeopardized federal monies, too.

“These are supposed to be third, third, third funding formulas. It will be a hard sell, and time is running out, if the province does not come through,” said Allison.

Berry said a final decision should be soon.

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