Green Energy Companies Get $59 Million Loan Assurance
Green energy developers got a much-needed boost as the U.S. Energy Department offered loan guarantees amounting to $59 million to two American companies focused on developing alternative renewable energy sources.
Such guarantees are sourced out of the U.S. economic stimulus package, which earmarks $6 billion in renewable energy and electricity transmission projects.
A $43 million loan guarantee to build a 20-megawatt flywheel energy storage plant in Stephentown, New York was offered to Beacon Power Corp, an energy storage company.
The Energy Department also presented a $16 million loan guarantee to Nordic Windpower, to expand its assembly plant in Pocatello, Idaho. Nordic is a privately held company owned by Goldman Sachs and other investors.
Steven Chu, Energy Secretary says, “These projects represent the innovative technologies that will help America reduce its dependence on fossil fuels and fight climate change.”
Beacon Power is expected to introduce new technology that will deliver renewable energy to the electricity grid. Nordic Windpower plant’s expansion will supply a one-megawatt wind turbine that is 10% less expensive to manufacture, install, operate and maintain than other competing systems.
The department is reining in applications for green energy and hopes it builds momentum within the next three years. The loan guarantees are a way of encouraging green energy developers. If the companies default on their payment on secured commercial loans for their projects, the department will repay them.
The department has been swamped with applications for the program and a streamlining process is being prioritized to manage its flow.
Clean, renewable energy is a top priority for U.S. President Barack Obama as he leads the U.S. in the global fight against climate change and a revival of the ailing economy.
Climate change efforts have gained headway with the passage of the Waxman-Markey bill in the Lower House, putting a mandatory 17% emissions cap on manufacturers and industries by 2020 and 83% by 2050.