US Treasury dishes out further $550m in renewables funding

The Obama administration's campaign to convince the world that the US is doing all it can to curb carbon emissions received a boost this week with the announcement that the Department of Energy has awarded a further $550m in Federal grants to renewable energy projects.

The new funding, which takes the total stimulus funding dished out to the renewables sector over $1bn, was awarded to 25 projects as part of the government's 1603 programme.

Under the scheme, renewable energy projects can apply for direct cash assistance towards up to 30 per cent of the cost of a project in the understanding that they will not then receive existing renewable energy tax credits.

Treasury Secretary Tim Geithner said that the latest funding, which follows an earlier $502m, would serve to cut emissions, create jobs and " jumpstart" private sector investment in the sector, while also enabling construction work to get under way immediately.

A number of high profile renewable energy developers were among those celebrating awards of up to $120m, including First Wind, Horizon Wind and Sun Edison.

The funding was announced on the same day as President Obama told a meeting of the UN that the US was fully committed to tackling climate change and had " done more to promote clean energy and reduce carbon pollution in the last eight months than at any other time in our history".

However, the speech was criticised by many green groups for failing to provide the fresh commitments that many observers believe are essential to deliver new impetus to the long-running international talks to agree a successor to the Kyoto Treaty.