Last week the U.S. Department of Energy gave the nation’s energy independence a nudge forward by announcing $4 billion in new funding for loan guarantees to support renewable energy and energy efficiency projects.
The solicitation is aimed at supporting “catalytic, replicable, and market-ready” projects that avoid, reduce or sequester greenhouse gases and employ new or significantly improved technology. Drop-in biofuels are among the five key technology areas identified in the funding announcement, along with integration of renewable sources to the grid and storage of electricity, waste-to-energy technology, enhancements to existing facilities, and improved efficiency in residential or commercial buildings.
Within the drop-in biofuels category, the program will support three areas:
a) New bio-refineries that produce gasoline, diesel fuel, and/or jet fuel;
b) Bio-crude refining processes; and
c) Modifications to existing ethanol facilities to gasoline, diesel fuel, and/or jet fuel.
Initial applications are due October 1, 2014. Click here for more information.
The funding includes $170 million to cover credit subsidy costs – essentially the insurance premium against default – for selected projects, potentially offsetting a significant component of the cost of participating in the program.
ABO members seeking to finance commercial-scale projects are encouraged to review both solicitations.