Dive Brief:
- The U.S. Department of Energy has announced it will add $4 billion to its loan guarantee initiative to boost investment in renewable and energy efficiency projects.
- The money will back projects investing in "drop-in" biofuels as a replacement fuel for gasoline-run vehicles, grid modernization, energy storage, alternative fuel sources such as waste, and energy efficiency.
- The $4 billion addition brings the department's energy loan guarantee scheme up to $24 billion in funding.
Dive Insight:
The money is not designed to fund new energy efficiency and renewable projects, but to provide a guarantee for investors wary of putting capital into new generation and efficiency initiatives, which are often seen as risky investments.
"Investments in clean, low-carbon energy also provide an economic opportunity," said Energy Secretary Ernest Moniz. "Through previous loan guarantees and other investments, the department is already helping launch or jumpstart entire industries in the U.S., from utility-scale wind and solar to nuclear and lower-carbon fossil energy."
The loan guarantees will also help states and utilities bolster their renewable energy and energy efficiency programs as they move to reduce their carbon emissions to meet the Environmental Protection Agency's proposed 30% national average reduction by 2030.