As part of President Barack Obama’s Climate Action Plan, the U.S. Department of Energy released a draft loan guarantee solicitation for innovative and advanced fossil energy projects and facilities that substantially reduce greenhouse gas and other air pollution.
The solicitation will support new or improved advanced fossil energy projects and facilities – such as advanced resource development, carbon capture, low-carbon power systems and energy efficiency improvements – that reduce emissions of carbon dioxide, methane and other greenhouse gas pollution. The DOE will make available up to $8 billion in loan guarantee authority through this solicitation.
Technology specifically mentioned in the draft include various methods of carbon capture, oxycombustion of coal or natural gas, hydrogen turbines, fuel cells, combined heat and power (CHP), distributed fossil-fired power systems, and waste heat recovery.
“America needs an all-of-the-above approach to develop homegrown energy and steady, responsible steps to cut carbon pollution, so we can protect our kids’ health and begin to slow the effects of climate change. These investments will play a critical role in accelerating the introduction of low-carbon fossil fuel technologies into the marketplace and reduce greenhouse gas pollution,” said Secretary Ernest Moniz. “Fossil fuels currently provide more than 80 percent of our energy, and adopting technologies to use them cleanly and more efficiently is critical to our all- of-the-above approach.”
Section 1703 of Title XVII of the Energy Policy Act of 2005 authorizes the Department to support innovative clean energy technologies that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases.
Projects deploying these technologies are typically unable to obtain commercial financing due to high technology risks. Once finalized, this solicitation will be the sixth issued in support of Section 1703.