A new Energy Ingenuity Fund that could mean up to $12 million for “high-impact” energy projects in Southwest and Southside Virginia has been launched by the Virginia Tobacco Region Revitalization Commission.
For 25 years, the commission has funded economic development efforts, and the new fund will build on that, the commission said in a news release.
“Just as early investments in broadband and site readiness are paying dividends for rural Virginia, this program’s energy sector investments are expected to create not just new jobs and investment in rural Virginia, but to also provide the innovative energy solutions that long-term economic prosperity requires,” the release states.
The commission’s two service regions will be eligible for up to $6 million each. The money will require a dollar-for-dollar match.
Applications will be solicited through a competitive process, and those applying must file a pre-application by Feb. 15. Candidates will be notified if they are selected to move on to the full application process.
Potential project areas include energy manufacturing supply chain, energy production, grid resiliency, energy storage, microgrids, hydrogen generation, smart cities, wind, small scale modular reactors and conversion of coal mines, according to the release.
Southwest Virginia officials have been working on several energy-related projects that they hope will bring jobs and growth to the region, including the Energy DELTA Lab, which is an energy technology testbed that aims to transform former coal mining land into labs to promote energy innovation.
A small modular nuclear reactor has also been proposed for Southwest Virginia to help meet the state’s energy goals and provide jobs for a region hit hard by the downturn in the coal mining industry. Gov. Glenn Youngkin announced in October 2022 that he planned to place an SMR in the region within 10 years, but nothing has been approved.
Will Payne, managing partner of Coalfield Strategies and an adviser to the Energy DELTA Lab, said that he’s aware of the new fund and provided some input when it was being considered.
“It’s exciting that the commission remains responsive to industry trends and can play a role in helping de-risk new investment in clean energy projects, which as you know are capital intensive. All the projects we’re working on are tens and hundreds of millions in capital expenditures. Energy DELTA Lab is considering options with other partners now,” he said.
Payne added that he’s interested in the new fund as a “piece of the greater pie, knowing that the pie is gigantic when it comes to capital expenditures.”
Duane Miller, executive director of the LENOWISCO Planning District Commission, said he’s excited about the new fund for energy projects. He said those with LENOWISCO hope to collaborate with others, including the Energy DELTA Lab, to look at the possibilities it might offer for their member localities: the counties of Lee, Scott, Wise and the city of Norton.
“We hope to brainstorm over the next couple of weeks,” he said.
Those applying must be a local governmental entity or nonprofit or must partner with a local government entity or nonprofit.
James Campos, deputy secretary of commerce and trade and acting executive director of the Tobacco Commission, said he’s seen the rapid growth of the energy sector over the last decade and the opportunities that can mean for communities.
“Energy jobs are good jobs that pay great wages and set communities up for long-term success,” he said in a news release. “Southern and Southwest Virginia are uniquely positioned to take advantage of this opportunity and the Tobacco Commission is committed to helping them attract top employers who will continue to grow and diversify their economies.”
He added that the program aligns with the governor’s Compete to Win agenda, which calls for “unleashing our talented workforce, investing in sites and infrastructure and elevating high-growth industries as well as the governor’s all-of-the-above approach to energy that recognizes the need to balance factors like affordability and environmental stewardship while also ensuring reliability and maintaining Virginia’s ability to compete.”
Projects must meet the following objectives:
• Deploy resources to amplify and accelerate investment in energy projects.
• Collaborate between key partners in energy and economic development.
• Enhance and expand the region’s energy supply chain.
• Develop more energy resiliency in Southern and Southwest Virginia.
Currently, only one round of the fund has been planned, but if it’s successful, the commission could consider future rounds, said Jordan Butler, public relations director and fund manager.
The 28-member Tobacco Commission was created in 1999 by the General Assembly to promote economic growth and development in communities dependent on tobacco using proceeds from the national tobacco settlement.