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U.S. DOE Office of Energy Dominance Financing (EDF)
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IN THIS ISSUE:
...and more updates below from the U.S. DOE Loan Programs Office!
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 As I reflect on the first quarter of 2024, I extend my heartfelt gratitude to every member of our community for your continued support of LPO’s mission to forge a path toward a cleaner, more equitable energy landscape in line with the national priorities set forth by the Biden-Harris Administration.
Portfolio Projects
I’m also excited to highlight several project milestones announced over this previous quarter, including:
- The closing of a $362 million loan to CelLink Corporation to help finance the construction of a domestic manufacturing facility that will produce components essential to electric vehicle (EV) assembly. Once fully operational, the facility is expected to support approximately 2.7 million EVs per year and create more than 1,300 good-paying jobs.
- A conditional commitment for a $544 million loan to SK Siltron CSS, LLC to expand American manufacturing of high-quality silicon carbide wafers for EV power electronics. This marks the tenth conditional commitment for a loan that LPO has announced in under two years via the Advanced Technology Vehicles Manufacturing Loan Program.
- A conditional commitment for an up to $72.8 million for a partial loan guarantee to finance the development of a solar-plus long-duration energy storage microgrid on the Tribal lands of the Viejas Band of the Kumeyaay Indians near Alpine, California. The Viejas Microgrid project is the first conditional commitment through the Tribal Energy Financing Program.
- A conditional commitment for a $2.26 billion loan to Lithium Americas Corp’s subsidiary, Lithium Nevada Corporation, to help finance the construction of a lithium carbonate processing plant at Thacker Pass in Humboldt County, Nevada. The region surrounding the project area includes the Fort McDermitt Paiute and Shoshone Tribe and communities. The borrower has been engaged with the Tribe and entered into a binding Community Benefits Agreement providing for infrastructure improvements, additional job training, employment opportunities for Tribal members, and support for cultural education and preservation.
- A conditional commitment for an up to $1.52 billion for a loan guarantee to Holtec Palisades, LLC to finance the restoration and resumption of service of an 800-MW electric nuclear generating station in Covert Township, Michigan. The Holtec Palisades project represents both the first-ever recommissioning of a shut-down nuclear power plant in the United States and the first conditional commitment for financing under the landmark Inflation Reduction Act-created Energy Infrastructure Reinvestment (EIR)
Liftoff Activities
LPO has continued to partner with the Office of Technology Transitions (OTT), the Office of Clean Energy Demonstrations (OCED), and other DOE offices on the Department-wide Pathways to Commercial Liftoff initiative, designed to help drive public- and private-sector engagement that will be critical to an effective clean energy industrial strategy. Webinars about the Virtual Power Plants and Next-Generation Geothermal Power Liftoff reports were hosted during this past quarter, and reports on Next-Generation Geothermal Power and Innovative Grid Deployment were released. You can sign up to be notified when new reports and webinars are available at: Liftoff.Energy.gov
Latest Application Activity
LPO's most recent Monthly Application Activity Report (MAAR) saw continued interest in private sector-led, government-enabled project financing across American energy sectors. As of March 31, 2024, LPO has 203 active applications requesting more than $262 billion in financing for proposed projects in nearly all fifty states, D.C., and Puerto Rico. Be sure to see LPO's latest MAAR for more information about the unprecedented interest in all of LPO's clean energy, advanced transportation, Tribal energy, and EIR lending programs!
Sincerely,
 LPO Director Jigar Shah
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DOE announced it closed a $362 million loan to CelLink Corporation, offered through the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. The loan will help finance the construction of a domestic manufacturing facility to develop lighter and more efficient flexible circuit wiring harnesses for automotive and other industries.
Once fully operational, the facility located in Georgetown, Texas, is expected to produce harnesses to support approximately 2.7 million electric vehicles (EVs) per year and displace an estimated 7.7 million gallons of gasoline annually due to weight and space savings of the flex harnesses. When fully operational, the project is expected to create 165 construction jobs and more than 1,200 permanent jobs.
For more details, see LPO's CelLink portfolio project page, read the full DOE press release, read the project's May 2023 conditional commitment announcement, and find out more about LPO advanced transportation project financing via the ATVM program.
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Demonstrate Deploy Decarbonize 2024 (Deploy24) will take place in Washington, D.C. on December 4-5, 2024. Deploy24 is the second annual gathering of decision makers from across the private and public sectors—including senior industry executives, capital allocators, community leaders, and others across the clean energy supply chain—all focused on accelerating the deployment of critical energy and decarbonization technologies and supply chains in the United States.
Hosted by the U.S. Department of Energy, Deploy24 builds this private-public dialogue through a range of unique formats, from keynote addresses to rigorous, off-the-record workshops organized by scalable technology, all with an urgent focus on the immediate opportunities and challenges to accelerating our domestic energy transformation.
Read the blog for more details.
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DOE recently announced the release of the Pathways to Commercial Liftoff for Innovative Grid Deployment, underscoring the critical role that grid technologies need to play in the nation’s affordable, reliable, and clean energy future.
Prior to this announcement, LPO published a Tech Talk on the electric grid supply chain, which is a key part of the Biden-Harris Administration’s ambitious goals to decarbonize the power sector by 2035 and the economy by 2050. Michael Reed, LPO’s Director of the Technical and Project Management Division, explains, “Early grid infrastructure has outlasted its expected lifetime and continues to operate, but the modern energy economy demands a secure, updated grid.”
View the Innovative Grid Deployment Liftoff report, watch the webinar, and read the full Tech Talk to see how LPO can finance innovative projects that employ this technology.
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LPO provides attractive debt financing for high-impact, large-scale energy infrastructure projects in the United States. This blog explains the two avenues through which financing can be provided: direct loans and loan guarantees.
At LPO, loans and loan guarantees can cover a maximum of 80% of the eligible costs of a project. Both loans and loan guarantees are debt instruments that must be fully repaid with applicable interest.
Part of LPO’s due diligence is confirming that a loan has a reasonable prospect of repayment. Failure to repay results in the project or borrower being in default. This differs from grant awards and cooperative agreements, which represent financial assistance forms that do not generally have to be repaid.
Read the full blog for more insights.
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In the same way that LPO provides strategic capital to help finance high-impact, large-scale energy infrastructure projects across the nation, institutional investors and other large-scale equity managers play a crucial role in accelerating the deployment of clean energy and advanced vehicle manufacturing technologies in the United States by providing capital at points all along the “bridge to bankability.”
The “Investing With LPO” presentation explains
- how LPO provides unique expertise that de-risks energy investments;
- how LPO employs an all-of-government approach to de-risking investments with a repeatable, world-class diligence framework; and
- the elements of LPO’s standard diligence analysis, including expert technical, market risk, credit, legal, and country risk assessments.
Learn more and download the presentation (created for informational purposes only, as per the included disclaimer on page 2).
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