WASHINGTON, DC, October 8, 2007 (ENS) - The federal government is supporting clean energy projects using innovative technologies with a loan guarantee program finalized Thursday by the Department of Energy. The program is based on the Energy Policy Act of 2005.

Energy Secretary Samuel Bodman has invited 16 project sponsors, who submitted pre-applications last fall, to submit full applications for loan guarantees.

These projects include advanced technologies involving the uses of biomass, fossil energy, solar, industrial energy efficiency, electricity delivery and energy reliability, hydrogen, and alternative fuel vehicles.

"Loan guarantees aim to stimulate investment and commercialization of clean energy technologies to reduce our Nation's reliance on foreign sources of energy," Bodman said. "Finalizing this regulation for the Department's Loan Guarantee program puts Americans one step nloser to being able to use new and novel sources of energy on a mass scale to reduce emissions and allow for vigorous economic growth and increased energy security."

The final regulation provides that the Department may issue guarantees for up to 100 percent of the amount of a loan, subject to the EPAct limitation that DOE may not guarantee a debt instrument for more than 80 percent of the total cost of an eligible project.

Under the final rule, if DOE issues a guarantee for 100 percent of a debt instrument, the loan must be issued and funded by the Treasury Department's Federal Financing Bank.

Bodman says DOE's intent is to only issue loan guarantees if borrowers and project sponsors pay the "credit subsidy cost," that is the long-term cost to the federal government of the loan guarantee. So, DOE does not plan to use taxpayer funds to pay for the credit subsidy costs of these loan guarantees. Also, the borrower must have a "significant equity stake" in the project.

The final rule is the result of a public rulemaking process, which began May 16, 2007.

Congress currently is considering the Energy Department's Fiscal Year 2008 Budget request for $9 billion in loan guarantee authority and $8.4 million to run the Loan Guarantee office.

Today's announcements build on months of action by DOE to implement its loan guarantee program. In August 2006, DOE issued a solicitation inviting pre–applications for up to $2 billion in loan guarantees. By the December 31, 2006 deadline for this solicitation, DOE received

The 16 pre-applicants invited today to submit full loan guarantee applications for review were selected from among 143 pre–applications requesting more than $27 billion in loan guarantee protection for project costs estimated at more than $51 billion.

The 16 projects and sponsors invited to submit full applications are:

• Coal Gasification
  
  Mesaba Energy Project (MEP-I, LLC): Integrated Gasification Combined Cycle, IGCC, Plant - Minnesota This state-of-the-art IGCC plant would allot space in its design for carbon dioxide, CO2, capture and storage.
  
  Mississippi Power Company: IGCC Plant that is the first-of-its-kind application.
  
  The Energy Department says these two IGCC projects would allow for potential CO2 capture in the future, would provide state-of-the-art emission controls exceeding the emissions requirements specified in the Energy Policy Act of 2005 and would help reduce cost and increase fuel flexibility of IGCC technology.
  
  TX Energy, LLC: Coal to Synthetic Gas IGCC Plant - Texas A new polygeneration gasification facility that can isolate a concentrated stream of CO2 while producing large amounts of power and methanol.


• Energy Efficiency
  
  GR Silicate Nano Fibers and Carbonates - Washington An energy efficient process for manufacturing paper.
  
  Sage Electrochromics: Electrochromic Window Manufacturing Project - Minnesota A manufacturing facility that would produce energy-efficient windows for the commercial and residential building sectors.


• Solar Energy
  
  Luz II - Nevada An efficient large-scale power project using concentrated solar-thermal technology.
  
  Solyndra, Inc. - California Manufacture of efficient thin-film photovoltaic modules.


• Electricity Delivery
  
  Beacon Power - Massachusetts Development of a system that will enhance peak performance of electric generation over the power grid.


• Hydrogen Fuel Cells
  
  Bridgeport Fuel Cell Park, LLC - Connecticut Plans to build the largest single-site installation of fuel cells in the world.


• Alternative Fuel Vehicles
  
  Tesla Motors - New Mexico Battery-electric powered vehicle with enhanced range that can be produced for the consumer market.


• Cellulosic Ethanol
  
  Alico, Inc. - Florida First-of-a-kind commercial-scale cellulosic ethanol plant that would use multiple feedstocks and produce multiple products.
  
  Blue Fire Ethanol, Inc. - California Commercial-scale cellulosic ethanol plant using an array of low-cost feedstocks.
  
  Choren USA - Southeast An industrial-scale biomass gasification facility for clean synthetic diesel fuels
  
  Endicott Biofuels, LLC - Virginia Second generation biodiesel and bio-derived products plant that would feature a high level of feedstock flexibility allowing for the production of a broad range of biodiesel fuels.
  
  Iogen Biorefinery Partners, LLC - Idaho Biorefinery to produce ethanol from a wide range of cellulosic feedstocks and byproducts
  
  Voyager Ethanol, LLC - Iowa Cellulosic ethanol plant that can accommodate multiple feedstocks in the production of ethanol and byproducts.

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