US DOE: Big Update on Loan Guarantee program for renewable energy projects

Douglas Schultz, Director of Loan Guarantee Origination at the US Energy Department posted a key update on project eligibility for the Loan Program. He writes:

During the latest three solicitations issued by the Department’s Loan Programs Office (LPO) for approximately $24 billion in Title XVII loan guarantees for energy projects (Solicitation No. DE–SOL– 007791, 7154 and 6303), the LPO identified sample lists of projects that were on the edge of commercial-scale deployment and poised to help launch new markets. These projects, and the technologies utilized by the projects, were identified after discussions with our colleagues in the national labs and the Department’s technology program offices, as well as with industry.

Not surprisingly, LPO has heard from technology providers and project developers with a wide range of exciting technologies and has received a robust pipeline of applications. However, during the course of our conversations with technology providers and project developers, it became clear that we could provide further clarity to potential applicants on the eligibility of projects.

In response, LPO developed and issued the following supplemental guidance for each of the open Title XVII solicitations:

• Renewable Energy and Efficient Energy Projects Loan Guarantee Solicitation Announcement Supplement – Guidance is provided on the eligibility of projects that use mixed fuels, projects that produce products (including chemicals), and for how efficiency is defined.
• Advanced Fossil Energy Projects Loan Guarantee Solicitation Announcement Supplement – Guidance is provided on the eligibility of projects that use mixed fuels, projects that produce products (including chemicals), and for how efficiency is defined.
• Advanced Nuclear Energy Projects Loan Guarantee Solicitation Announcement Supplement – Guidance is provided on projects that do not generate, or facilitate the generation of, power.

These supplements make clear that eligible projects are not limited to the projects and technologies identified in the sample list of projects in the most recent round of solicitations, and LPO eagerly anticipates seeing what types of eligible projects the market applies for during each submission dated.  These supplements further illustrate LPO’s effort to be responsive to the needs of the market.