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Loans can be financed through commercial banks, bonds or other sources of private lending; through the Federal Financing Bank (FFB); or a combination of the two. With FFB loans, interest rates are tied to U.S. Treasuries at 2% to 3% per year, and the total cost of money comes in at or below 4% for the 20-year term of a loan. For more details visit us at: https://www.renewable-energy.consulting/
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U.S. Department of Energy Loan Guarantees The U.S. Department of Energy (DOE) provides loan guarantees to accelerate the commercialization of innovative clean energy projects. This is one of very few programs in the private and government sectors that will finance first-of- a-kind technologies. Moreover, the DOE Loan Guarantee program offers the lowest-cost financing available for projects that require loans of $75 million to over $1 billion, with completive rates for loans of less than $75 million. Loans can be financed through commercial banks, bonds or other sources of private lending; through the Federal Financing Bank (FFB); or a combination of the two. With FFB loans, interest rates are tied to U.S. Treasuries at 2% to 3% per year, and the total cost of money comes in at or below 4% for the 20-year term of a loan. DOE’s authority to issue loan guarantees comes through Title XVII of the 2005 Energy Policy Act. Hence, it is known as the Title XVII program. DOE manages a portfolio of more than $30 billion covering more than 30 projects. Overall these loans and loan guarantees have resulted in more than $50 billion in project investment. While financing first-of-a-kind projects carries considerable risk (which is why commercial banks and private lenders avoid them and why the Title XVII program was created – to help promising technologies ?ridge ?hat is k?o?? as the ??alley of death? ?et?ee? su??essful de?elop?e?t and commercialization), DOE has maintained a strong financial performance, even when
compared to commercial banks, with its losses as a percentage of loans standing at a miniscule 2.33% The Title XVII program currently has $36 billion available in loan guarantee authority through four different loan and loan guarantee funding opportunities. Three of these opportunities – for renewable energy and energy efficiency, advanced fossil energy and advanced nuclear energy projects –were extended at the end of November 2016for an additional three years, with multiple upcoming application submission dates. The fourth Title XVII loan program – for Advanced Vehicle Technology Manufacturing, which provided the initial startup funding for the Tesla Model S and Ford Eco-Boost engine– is a standing $16 billion revolving loan program. Projects must: 1) utilize a new or significantly improved technology; 2) avoid, reduce or sequester greenhouse gases; 3) be located in the U.S.; and 4) have a reasonable prospect of repayment. Renewable Energy Consulting Services (RECS) can assist technology developers prepare and su??it su??essful appli?atio?s for all four of the DOE’s Title XVII progra?s. RECS’s focus, however, is on renewable energy and energy efficiency projects and advanced fossil energy projects (that focus on commercializing technologies that will capture and store CO2 and/or reduce greenhouse gas emissions by 50% or more compared to existing fossil fuel extraction,
processing and production methods). RECS currently have applications making their way through the program for three technology innovators in these two programs. For further information on applying for financing through the Title XVII program, please contact: Craig Evans, Managing Director, Renewable Energy Consulting Services, and Tel: 434- 303-0800, Email: craig@renwable-energy.consulting, or visit the RECS website at www.renewable-energy.consulting. Contact Us: Renewable energy consulting Services P.O. Box 2605 Charlottesville, Virginia 22902 USA Telephone: +1 434-303-0800 Email: info@renewable-energy.consulting