Green backs for green energy

The US Department of Energy (DoE) is making $10bn (£5bn) in loan guarantees available for renewable energy and energy-efficiency initiatives as part of a $30.5bn (£16bn) energy-funding package sent to the US Congress for approval in April.

The $10bn is available for companies and consortia to submit 'solicitations' for projects which "avoid, reduce or sequester air pollutants or greenhouse gas emissions", according to a statement from the DOE's Loan Guarantee Programme.

The list of viable projects in renewables includes biomass, geothermal, hydro solar and wind energy plants and alternative-fuel vehicles.

Energy-efficiency projects encompass building technologies and efficient electricity transmission, distribution and storage, including integration of renewable energy, energy efficiency and energy storage technologies into the electrical grid.

The DoE said it will also back green manufacturing projects.

“Loan guarantees … will enable project developers to bridge the financing gap between pilot and demonstration to commercially viable projects that employ new or significantly improved energy technologies,” said Jeffrey F Kupfer, acting deputy secretary of energy.

The balance of the $30.5bn has been earmarked for nuclear power projects.

Later this summer, the DOE intends to issue loan guarantee applications of up to $8bn (£4bn) for advanced fossil energy projects.