DOE issues solicitation for up to $8B in loan guarantees for advanced fossil energy projects
12 December 2013
The US Department of Energy (DOE) published a solicitation (DE-SOL-0006303) making up to $8 billion in loan guarantee authority available to support advanced fossil energy projects that avoid, reduce, or sequester greenhouse gases. Authorized by Title XVII of the Energy Policy Act of 2005, loan guarantees under this new solicitation will help provide critical financing to support new or significantly improved advanced fossil energy projects.
Currently providing 80% of our energy, coal and other fossil fuels will continue to be a critical part of our energy portfolio as we move toward a low-carbon future. By helping to accelerate the introduction of innovative, clean fossil energy technologies ready for deployment at commercial-scale today, investments under this solicitation will help ensure we continue to have access to affordable, clean energy from all our domestic energy resources tomorrow.—Energy Secretary Moniz
DOE published a draft solicitation on 9 July 2013, which opened a 60-day comment period. (Earlier post.) During this time, the Department listened to potential applicants and other stakeholders and then incorporated their feedback into the solicitation. As a result, the solicitation includes new provisions intended to facilitate applications, ensure quick review, and foster successful public-private partnerships.
Eligible projects are those using advanced fossil energy technology in one or more of the following technology areas:
Advanced Resource Development. Projects that employ new or significantly improved technologies to economically develop, recover, and produce traditional and non-traditional fossil energy resources with reduced greenhouse gas emissions;
Carbon Capture. Projects that integrate fossil fuel usage in traditional processes with new or improved technology that captures and removes CO2 for permanent storage in underground formations or through beneficial reuse;
Low-Carbon Power Systems. Projects that use fossil fuels for electricity generation using novel processes or improved technologies that can seamlessly integrate with CO2 capture and storage or beneficial reuse; or
Efficiency Improvements. Projects that incorporate new or improved technologies to increase efficiencies and substantially reduce greenhouse gas emissions associated with fossil fuel supply and use.
Projects must also meet both of the following requirements:
Avoid, reduce, or sequester anthropogenic emission of greenhouse gases; and
Employ New or Significantly Improved Technology as compared to Commercial Technology in service in the United State at the time the Term Sheet is issued.
With the publication of the Advanced Fossil Energy Projects solicitation, the Department is accepting applications through the Loan Programs Office web portal at apply.loanprograms.energy.gov, and expects to receive the initial applications by the end of February 2014.
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