U.S. Energy Deparment opens $8 billion loan guarantee for innovative energy projects

The U.S. Department of Energy opened an $8 billion loan guarantee program in order to support innovative advanced fossil energy projects that avoid or reduce greenhouse gases, such as advanced resource development, carbon capture, low-carbon power systems, and efficiency improvements.

The loan guarantee is a part of President Barack Obama’s Climate Action Plan. “Under the Obama Administration, the Energy Department is taking an all-of-the-above approach to American energy to ensure we develop all our abundant energy resources responsibly and sustainably,” said Energy Secretary Ernest Moniz.

“Currently providing 80 percent of our energy, coal and other fossil fuels will continue to be a critical part of our energy portfolio as we move toward a low-carbon future. By helping to accelerate the introduction of innovative, clean fossil energy technologies ready for deployment at commercial-scale today, investments under this solicitation will help ensure we continue to have access to affordable, clean energy from all our domestic energy resources tomorrow”, he explained.

Currently, the Department of Energy’s Loan Programs Office (LPO) supports a large, diverse portfolio of more than $30 billion supporting more than 30 closed and committed projects, which range from thermal energy to electric vehicles.

ALLCOT