KUTNA HORA, CZECH REPUBLIC - (February 27, 2003) On Monday, March 3, 2003, the U.S. Trade and Development Agency (USTDA) will award a $160,900 grant to KH Tebis, s.r.o. to fund a feasibility study on a renewable energy project. The grant will be conferred in a signing ceremony at 2:30 p.m. at the Italian Court in Kutna Hora. The U.S. Ambassador to the Czech Republic, Craig R. Stapleton, will sign the grant agreement on behalf of the U.S. government, and the Managing Director of KH Tebis, Vladimir Gajdos, will sign on behalf of the grantee.

The USTDA-funded feasibility study will examine a biomass to energy co-generation power plant project planned by KH Tebis and represents a continuation of USTDA's commitment to the renewable energy sector in Central Europe. In December 2002, USTDA sponsored a Waste-to-Energy and Renewable Energy Regional Conference in Prague designed to assist the Czech Republic and other Central European countries in the development of renewable energy sources.

KH Tebis is a municipal heat utility that is owned by the Municipality of Kutna Hora. KH Tebis operates the existing municipal heating plant and plans to build and operate a central heat co-generation plant that uses biomass from municipal solid waste (MSW) as the feedstock. The plant will be fueled by biogas created in anaerobic digesters from MSW and other biomass. The biogas will be used to generate 250 to 400 kilowatts (kW) of electricity through use of a micro-turbine and 400 to 800 kW of thermal energy.

The proposed project is expected to reduce emissions of greenhouse gases and groundwater contamination from landfilling. It also will help the Czech Republic meet its commitment to reduce the amount of MSW it sends to landfills and to increase utilization of biomass resources while generating "green" sources of energy for the country. With the successful implementation of the KH Tebis project, it is expected that District Heating Association member companies in the Czech Republic would replicate the project in 100 to 150 other locations.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

The Italian Court is located at Havlíckovo námestí 552 in Kutna Hora. For more information on media coverage at this event, please contact the Commercial Section at the U.S. Embassy in Prague at +420.2.5753.1162.

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