Loan Guarantee Program Supports Commercialization of Technologies

October 16, 2006

To further the goals of the President’s Advanced Energy Initiative and boost the commercialization of new energy technologies, DOE announced that it is offering $2 billion in federal loan guarantees for energy projects, including those that impact industrial efficiency. This financing opportunity seeks to promote advanced technologies that will diversify U.S. energy sources, reduce reliance on foreign energy sources, and encourage energy efficiency. Title XV11 of the Energy Policy Act of 2005 (EPAct) authorizes DOE to issue loan guarantees to encourage new or improved energy technology projects in several key efficiency and renewable energy technologies that are entering the commercial market. In addition to industrial energy efficiency, the program will support:

Biomass
Hydrogen
Solar
Wind and hydropower
Advanced fossil energy coal
Carbon sequestration practices and technologies
Electricity delivery and energy reliability
Alternative fuel vehicles
Pollution control equipment.

The Loan Guarantee Program is specific to projects already in development rather than research and development of new technologies. Eligible applicants include U.S. companies, associations, and state and local governments.

“The Energy Policy Act has set the country on a path forward to increasing clean energy sources that will power our robust economy for generations to come,” Energy Secretary Samuel Bodman said. “With these loan guarantees, we hope to encourage creativity and ingenuity that will help us strengthen our nation’s energy security”.

DOE has issued a preliminary set of guidelines that will apply to the first round of solicitation of projects, and views this first round as a learning opportunity for developing final regulations for the Loan Guarantee Program. DOE encourages stakeholders to submit questions and feedback to help define and adopt final regulations. In response to the solicitation, DOE invites interested parties to submit a pre-application by November 6, 2006. If the pre-application meets the required criteria, the applicant will be notified that they are eligible to submit an application.

Visit the Loan Guarantee Program Web site for further information on the program, and to submit a pre-application.