Dear ABO member,
As the U.S. prepares to celebrate its independence this holiday weekend the U.S. Department of Energy gave the nation’s energy independence a nudge forward today 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.
The new funding is in addition to $8 billion in loan guarantee support currently available for advanced fossil energy projects. That solicitation was released in December and remains open for projects that reduce, avoid, or sequester greenhouse gases, including projects such as algae-based carbon utilization projects, that involve carbon capture technologies.
ABO members seeking to finance commercial-scale projects are encouraged to review both solicitations.