US Department of Energy Issues Solicitations for up to $38.5 Billion in Loan Guarantees for Renewable and Advanced Energy Technology Projects

US Department of Energy Issues Solicitations for up to $38.5 Billion in Loan Guarantees for Renewable and Advanced Energy Technology Projects

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On June 30, 2008, the US Department of Energy (DOE) announced three solicitations for federal loan guarantees of up to $38.5 billion. The DOE solicitations target projects that employ renewable and advanced energy technologies that avoid, reduce or sequester emissions of air pollutants and greenhouse gases. The three solicitations are in the areas of (1) energy efficiency, renewable energy and advanced transmission and distribution technologies (up to $10 billion); (2) nuclear power facilities (up to $18.5 billion); and (3) advanced nuclear facilities for the 'front-end' of the nuclear fuel cycle (up to $2 billion).

In its solicitation in the area of energy efficiency, renewable energy and advanced transmission and distribution technologies, DOE is actively promoting projects that fall within the following three general categories: (1) manufacturing projects; (2) stand alone projects; and (3) large-scale integration projects that may combine multiple eligible technologies. Examples of projects that may qualify under these general categories include ocean wave, tidal and river current manufacturing facilities; hybrid vehicle manufacturing facilities; tidal, wave and offshore wind energy projects; advanced design multi-feedstock bio-refineries; large solar arrays; energy storage technologies; and grid reliability investments.

DOE's loan guarantee process is organized into four phases: application, project evaluation, conditional commitment, and final approval and closing of a Loan Guarantee Agreement. Selection criteria for the clean energy projects under these solicitations will focus on a project's ability to avoid, reduce or sequester air pollutants or greenhouse gas emissions; the speed with which the technologies can be commercialized; the prospect of repayment of the guaranteed debt; and the potential for long-lasting success of these technologies in the marketplace.

Applications for a loan guarantee in response to DOE's solicitation are due on or before December 31, 2008. Additional information on the DOE solicitations can be found at http://www.lgprogram.energy.gov.