DOE Loan Guarantee

The U.S. Department of Energy's Loan Guarantee Program provides for federal support of clean energy projects that use innovative technologies, and spurs further investment in these advanced technologies. The solicitation announcement can be found here.

In a step to further the development of alternative energy? sources in the United States, the Department of Energy will provide $30 billion in loan guarantees for renewable energy and other projects. The media announcement summarizes the program. Round 1 of applications are due 14 September 2009.

The new measure will boost new renewable fuels projects with up to $500 million to subsidize costs to support loans for cutting-edge biofuels projects. The subsidies will affect only transportation fuels? that employ new or significantly improved technology that is not already commercialized. Also, the projects need to produce fuels using biomass and other similar sources that substantially reduce life-cycle greenhouse gas emissions. To determine if the fuel in question substantially reduces emissions, DOE will consider the project’s emissions reduction/gallon of gasoline or diesel equivalent replaced, and greenhouse gas reductions/$ loan value and total project costs.

Additional loan guarantee solicitations funded by the Recovery Act? are expected.