The final week in September was a big one for the clean energy industry and for clean energy researchers. During that week, the Department of Energy awarded $5.9 billion in loan guarantees for clean energy manufacturers and $156 million in Advanced Research Projects Agency-Energy (ARPA-E) grants to clean energy inventors and technology entrepreneurs.The new loan guarantees mean that, over the past two years, DOE has backed some $16 billion in loans for various clean energy manufacturers through the American Recovery & Reinvestment Act of 2009 (ARRA). The loan guarantee program does not provide loans but offers federal guarantees to back up loans in case of failure. The program’s goal is that by offering government support, private investors will be more willing to put their money into risky, but potentially game-changing, energy projects.
But all projects that receive guarantees must obtain private funding first, according to agency rules. In the case of Solyndra, the infamous and now-bankrupt solar manufacturer, the firm raised about $1 billion in private investments, and the U.S. is on the hook for $530 million of that amount through a DOE loan guarantee (C&EN, Oct. 3, page 28).
