THE U.S. DEPARTMENT of Energy released a solicitation Dec. 12 worth up to $8 billion in loan guarantees for new or significantly improved projects that avoid, reduce, or sequester greenhouse gases from fossil energy use.
In an announcement, the agency said the solicitation will help finance projects such as resource development, carbon capture, low-carbon power systems, and efficiency improvements that reduce emissions of carbon dioxide, methane, and other greenhouse gases.
Loan guarantees are important for new technology development, which are often high risk, high-cost investments. Federally-backed loans help ensure that promising projects can go forward and possibly achieve substantial breakthroughs.
The Dec. 12 solicitation is part of a larger pool authorized by Title XVII of the Energy Policy Act of 2005. Approximately $30 billion has already been allocated around the country on projects such as biofuels and wind, solar, and nuclear power. The act also authorizes direct loans for electric vehicles and other advanced automotive technology.
Boilermakers have been involved in two large-scale projects under the act. Local 92, Los Angeles, helped construct the Ivanpah Solar Electric Generating System in the California Mojave Desert, which received $1.8 billion in loan guarantees. The solar-thermal project uses mirror arrays to concentrate sunlight on boilers placed high atop towers. Local 456, Rock Hill, S.C., is helping to build two new units at the Plant Vogtle Nuclear Generating Station near Waynesboro, Ga., which received a conditional loan guarantee of $8.3 billion. The Vogtle project represents the nation’s first nuclear reactor units to be newly permitted in 30 years.
