The USDA on March 23 announced it will provide a $25 million loan guarantee under the Rural Development Timber Production Expansion Program to support a 3-megawatt (MW) biomass gasification project in California under development by Blue Mountain Electric Co. The loan guarantee will be used to finance a 3 MW gasification plant that will convert forestry biomass waste into synthetic natural gas through the process of thermochemical conversion. The total project cost is estimated at $42.2 million. According to USDA, the loan guarantee will support construction of the facility and provide working capital for operating expenses during the first year. In its announcement, the USDA also indicated there is a pending grant application for the project that has already been approved by the Efficiency Team. The agency said the guaranteed loan package had not been submitted at that time.