DOE Offers a $24 Million Loan to a Manufacturer of Emissions Controls
October 28, 2009
DOE announced on October 27 that it has offered a conditional loan of $24 million to Tenneco Inc. to develop fuel efficient emission control components for advanced technology vehicles. Tenneco, headquartered in Lake Forest, Illinois, is the first component manufacturer to receive a conditional loan commitment under the DOE's Advanced Technology Vehicle Manufacturing (ATVM) program. Previously, the program loaned $5.9 billion to Ford Motor Company, $1.6 billion to Nissan North America, Inc., and $465 million to Tesla Motors. The ATVM program has also offered a conditional loan of $528.7 million to Fisker Automotive.
Tenneco will use the loan for emission control components for gasoline-fueled and diesel-fueled vehicle engines, including engines for hybrid electric vehicles. These advanced technology products will help car and light truck manufacturers meet increased federal fuel economy standards, while also meeting more stringent standards for vehicle tailpipe emissions. More than two million automobiles and light trucks built in model years 2010 to 2014 will be equipped with the company's emission control technologies, including catalytic converters, diesel particulate filters, diesel oxidation catalysts, and selective catalytic reduction units. The ATVM program is an open process to promote the development of fuel-efficient advanced technology vehicles. First appropriated in the fall of 2008, the program provides loans to companies making cars and components in U.S. factories that increase fuel economy at least 25% above 2005 fuel economy levels. See the DOE press release and the ATVM Web site.