Working under an imminent deadline and political pressure, this week the U.S. Department of Energy gave its final approval to $1.2 billion in financing for several projects under Section 1705 of the Energy Policy Act of 2005—which authorizes loan guarantees for certain renewable energy systems, electric power transmission systems and leading edge biofuels projects that commence construction no later than September 30.
Three projects received the go-ahead late in the week, leaving a number of major PV solar initiatives on the ledge—and billions in funding on the ledger.
Photovoltaic (PV) thin-film manufacturer First Solar, based in Tempe, Arizona, relinquished its claim to a $1.93 billion loan last week, announcing that the 550-megawatt (MW) Topaz project in San Luis Obispo County, California would not meet the end-of-month cut-off date. Still awaiting approval at the eleventh hour are First Soar’s 550-megawatt Desert Sunlight (News - Alert) project in Riverside County, California; and its 230-megawatt Antelope Valley Solar Ranch 1 (AVSR1) project in Lancaster, California.
Other PV projects that remain in the pipeline include: Fotowatio Renewables in Las Vegas (20 MW); Prologis Project Amp (733 MW in 28 states); Solar City’s SolarStrong (371 MW in 33 states); and California Valley Solar Ranch in San Luis Obispo, Calif. (250 MW).
Among those that already have been sanctioned this week are:
- The $132.4 million Abengoa Bioenergy Project, which will support the development of a commercial-scale cellulosic ethanol plant. ABBK’s parent company and project sponsor, Abengoa Bioenergy US Holding, Inc., estimates the project will fund approximately 300 construction jobs and 65 permanent jobs. The project will be located in Hugoton, Kansas, about 90 miles southwest of Dodge City, Kansas.
- The $337 million Mesquite Solar 1 project, to support the development of a 150 MW alternating current PV solar generation project in Maricopa County, Arizona. San Diego-based Sempra Energy (News - Alert), the project sponsor, estimates the project will fund up to 300 construction jobs.
- The $737 million Crescent Dune Solar Energy Project, developed by Tonopah Solar Energy and sponsored by Santa Monica-based Solar Reserve. The team will construct a 110 MW concentrating solar power tower generating facility, with molten salt as the primary heat transfer and storage medium. It will be the first of its kind in the United States and the tallest molten salt tower in the world. Located 14 miles northwest of Tonopah, Nevada on land leased from the Bureau of Land Management, the company anticipates the facility will fund 600 construction jobs and 45 permanent jobs.
Stay tuned for final developments!
The Department of Energy’s Loan Programs Office (LPO) administers three separate programs: the Title XVII Section 1703 and Section 1705 loan guarantee programs, and the Advanced Technology Vehicle Manufacturing (ATVM) loan program. The Title XVII loan guarantee programs support the deployment of commercial technologies along with innovative technologies that avoid, reduce, or sequester greenhouse gas emissions, while the ATVM loan program supports the development of advanced vehicle technologies. To date, the Department has issued loans, loan guarantees or offered conditional commitments for loan guarantees totaling nearly $40 billion to support more than 40 clean energy projects across the United States, including several of the world’s largest solar generation facilities, three geothermal projects, the world’s largest wind farm, and the nation’s first new nuclear power plant in three decades.
Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Rich Steeves
