The Loan Guarantee Program
The Department of Energy’s loan guarantee program is a key component of its efforts to support the development of clean energy technologies. The program provides financial backing to companies working on projects that aim to reduce greenhouse gas emissions and promote energy efficiency.
The new loans are part of a larger effort to revive the program and provide more funding for clean energy projects.
Reviving the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program
The Advanced Technology Vehicles Manufacturing (ATVM) loan program, a key component of the US Department of Energy’s (DOE) efforts to promote clean energy, has been revived. The program, which was initially launched in 2009, provided significant funding for the development and production of advanced vehicles, including electric and hybrid cars.
Key Features of the Revived ATVM Program
A condition of these loans is that the borrowers “meaningfully engage with community and labor stakeholders to create good-paying jobs and improve the well-being of the local community and workers.” Over the past couple of weeks, the DOE approved or conditionally approved five loans totaling roughly $15.95 billion. We’re keeping track of where the Biden administration’s DOE loan money is going. Here are some of the biggest recent recipients. EVgo On December 13, the DOE approved a $1.25 billion loan guarantee ($1.05 billion of principal and $193 million of capitalized interest) to electric vehicle charging startup EVgo. The funds will be used to aid the installment of 7,500 public chargers at 1,100 charging stations across the U.S. over the next five years. The first deployments will include 350kW DC fast-charging equipment that can charge two cars at once, and the chargers will be equipped with the Combined Charging System and North American Charging System ports.
The loan will also cover the costs of the battery recycling facility and the production of battery cells for electric vehicles.
The Breakthrough in Lithium-Ion Battery Technology
The approval of the loan by the Department of Energy (DOE) marks a significant milestone in the development of lithium-ion battery technology. The project, led by StarPlus Energy, aims to increase the production of lithium-ion batteries in the United States, reducing reliance on foreign suppliers and promoting energy independence.
Key Benefits of the Project
The project is expected to create about 3,200 construction jobs and 2,800 operations jobs at the plants. At peak production, the factories are expected to produce 67 GWh of battery capacity, which is enough to power 670,000 vehicles annually. Sunwealth Clean energy investment firm Sunwealth on November 25 scored a loan guarantee of up to $289.7 million for its Project Polo. If finalized, the loan will finance the deployment of up to 1,000 solar photovoltaic and battery energy storage systems to commercial and industrial facilities across up to 27 states. Project Polo is expected to create 3,700 jobs, including 1,900 solar and storage installation jobs and 1,700 operations and maintenance jobs.
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