By Mike McMullen

As the push for renewable energy development intensifies across the U.S., cities and developers alike are beginning to eye brownfield properties as ideal locations for renewable energy projects. The benefits of converting landfills or other environmentally-impaired land parcels into renewable power-generating sites are substantial.

Smart energy for site remediation
For one, energy that is generated from renewable power sources can be used to supplement the enormous energy requirements for site remediation efforts. So long as the risk of the renewable energy project is protective of construction and maintenance workers, remediation can occur simultaneously. Aerojet, for example, announced a $20 million deal this summer to build a 3.5-megawatt array of solar panels at the rocket maker's campus near Rancho Cordova, Calif. The panels will supply approximately one-fifth of the energy needed to operate the system of wells and water-treatment equipment the company is currently using in its remediation efforts at the site.

Proximity to the grid
As brownfield sites are typically former military bases, industrial sites, abandoned manufacturing facilities or commercial buildings, there is a greater likelihood that the site will have a substantial connection to the power grid. Proximity to an electrical transmission line that can transport energy generated by a renewable project is often a huge concern for developers, which makes the case for building renewable energy projects on brownfield properties even more compelling.

Converting waste emissions into energy
Municipal solid waste landfills, the second largest source of human-related methane emissions in the U.S., are often an untapped source of valuable, homegrown energy. Landfill gas (LFG), a source of renewable biomethane fuel, is created as solid waste decomposes in a landfill. While it’s still an emerging commodity, LFG has already proven its economic and environmental worth in 43 states. According to the Environmental Protection Agency (EPA), there are at least 450 operational landfill gas projects in 43 U.S. states that supply 11 billion kilowatt hours of electricity and provide an estimated annual energy benefit equivalent to electricity for more than 870,000 homes.

Satisfy renewable energy portfolio obligations
Renewable energy projects built on brownfields are also a smart way for states and/or municipalities to satisfy annual Renewable Portfolio Standard (RPS) obligations. So far, 37 U.S. states require a certain percentage of utility power generation to come from renewable sources by a particular date. Incentives to meet these stringent RPS requirements are plenty: the U.S. Treasury, for instance, pays up to 30 percent of the project cost via tax credits or direct cash payments. Additionally, the American Recovery and Reinvestment Act of 2009 allows taxpayers to receive either a renewable electricity production tax credit (PTC) or a direct grant from the U.S. Treasury for up to 30 percent of the project construction costs. Qualified renewable energy project facilities include solar, landfill gas, wind, biomass, hydroelectric, geothermal, fuel cells, municipal solid waste, CHP/cogeneration, hydrokinetic, tidal energy, wave energy, ocean thermal and microturbines.

As interest in renewable energy projects continues to be supported for environmental, geopolitical and economic reasons, activity in the brownfield market is only expected to grow. In fact, EnviroFinance Group is presently open to receiving debt requests on all types of renewable energy projects to be built on environmentally-impaired properties. Send us an e-mail at EFG@envirofinancegroup.com or call us directly at (916) 326-5225.