US to launch $4bn green bank loans

The US Department of Energy (DOE) will channel US$4 billion in loans to renewable energy companies in a bid to rejuvenate a key government backed programme.

The Obama administration has submitted a draft plan that would provide loan guarantees for innovative clean technology projects that reduce greenhouse gas (GHG) emissions.

Once the solicitation is finalised, the Department’s Loan Programs Office (LPO) will be accepting applications in three areas, which also include the US$8 billion Advanced Fossil Energy Projects Solicitation that was released in December 2013 and the US$16 billion Advanced Technology Vehicle Manufacturing (ATVM) loan programme.

The loans will be particularly focused on advanced energy efficiency, electric grid technology and storage, biofuels for conventional vehicles and waste-to-energy products.

Earlier this month, the DOE announced it had revamped the review process for its automotive loan programme and it is hoping to attract new applicants.

Currently, the LPO supports a diverse portfolio of more than US$30 billion in loans, loan guarantees, and commitments, supporting more than 30 projects nationwide. The projects that LPO has supported include one of the world’s largest wind farms; several of the world’s largest solar generation and thermal energy storage systems; and more than a dozen new or retooled auto manufacturing plants across the country.