US Department of Energy secures USD $107.57 billion deals
The United States Department of Energy's Loan Programs Office (LPO) has marked its most productive period to date, announcing 53 deals totalling USD $107.57 billion in project investment commitments over the past four years.
Under the Biden-Harris Administration, the LPO achieved approximately USD $46.95 billion for 28 active conditional commitments and USD $60.62 billion for 25 closed loans and loan guarantees. Their current operational pace is underscored by an average processing rate of three monthly transactions.
The LPO's objectives include broadly investing in job creation, pollution prevention, and strengthening the United States' competitive stance in the global market. These investments align with the U.S. government's strategy to invent and build clean energy technology domestically. "With the implementation of the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA) underway, America is doing big things again," the Office stated.
Jigar Shah, Director of the LPO, identified an opportunity over the next decade for the United States energy economy amidst geopolitical competition with China. "Globally, China continues to dominate battery supply chains using last year's technology," he remarked, adding that the U.S. is leveraging advanced technology to catch up in crucial sectors.
Projections show U.S. electricity demand rising by 15.8% by 2029, necessitating the deployment of diverse and resilient energy solutions. The release mentions that "each of these technologies is now on track to achieve the necessary level of capital formation and scale to achieve commercial liftoff. "
The LPO's 2024 achievements include closing 14 loans and generating conditional commitments for 15 deals. These projects are geographically widespread and aim to facilitate the creation of trillion-dollar industries over the coming decade.
A significant 2024 highlight was the USD $1.52 billion loan guarantee to Holtec Palisades, marking the first restart of an American nuclear power plant under the Energy Infrastructure Reinvestment (EIR) title.
In grid modernisation efforts, LPO issued roughly USD $40 billion across 11 utilities to enhance renewable energy integration through hydropower, battery storage, transmission upgrades, and the development of virtual power plants.
Further notable accomplishments include strengthening Tribal energy sovereignty and Puerto Rico's energy resilience through substantial financing that supports clean energy and grid stability projects.
The LPO continues to process an array of project applications, with a current portfolio nearing USD $100 billion in closed loans. It maintains oversight and stewardship of taxpayer funds. The pipeline reflects a promising trajectory for advancing the U.S. energy economy, supporting the development of innovative technologies, and bolstering domestic manufacturing.
"Together, LPO's pipeline and portfolio paint a picture of the future of the United States' energy economy," Shah said, emphasising the potential for these investments to shape the U.S. energy system's competitiveness and resilience for decades.
