CERAWEEK Department of Energy loan office says some applicants need ‘mentor’ | – #CERAWEEK #Department #Energy #loan #office #applicants #mentor
HOUSTON, March 7 (Reuters) – USALess than a third of companies applying for the US’s green energy loan program are complex credit can pass the review process, while the rest require assistance that slows approval, a senior administration official told Reuters.
of the Department of Energy Credit Program Office car aims to accelerate the development of the clean energy sector through loans to producers, miners, recyclers and others, many of whom have difficulty accessing private financing given their large capital needs.
Lithium Americas Corp (LAC.TO) and Piedmont Lithium Inc (PLL.O) total 124.1 in LPO financing billion is among 135 companies with dollar applications.
of the Department of Energy Credit Of these applicants, Cigar Shah, head of the Office of Programs, told Reuters on the sidelines of the CERAWeek energy conference in Houston. 100, the Department of Energy has hired staff to provide business development advice and “intensive mentoring.”
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“They require more hand-holding,” Shah said. “They are equally innovative. They are amazing. We love them all equally. But we have a certain margin around the reasonable prospect of paying Congress. Therefore, everyone should reach this bar.
Shah USAdeclined to provide specific information about the applicants, citing privacy laws.
Given the rapidly evolving technologies in the clean energy space, Shah said the department could shorten loan terms. For example, a project loan 20 may have to pay back in five years as opposed to a year.
“We thought, ‘You know, you can’t buy this from us because we’re going to give you another technology substitute we think you will.” If we think that this is a risk, then we simply change the terms of the loan,” said Shah.
Shah said the LPO’s office is looking for projects designed to reduce emissions from electric utilities and oil and gas gas companies, as well as geothermal companies, wants to apply more.
“There are a lot of people who will come with the existing infrastructure 10 they’ve published their plans for how they’re going to reduce their carbon emissions for the year, and we can, you know, take them forward and accelerate those efforts,” he said.
Utilities and oil-gas companies with carbon capture and sequestration technologies, equipment substitute can reduce emissions by making or adding or finding and fixing methane leaks.
Shah said his office has recently seen increased interest in the offshore wind industry. President Joe Biden has said he hopes to expand as part of his administration’s climate strategy, but commercial lenders are reluctant to engage.
Commercial debt markets are “less interested in the more innovative approaches (wind companies) are taking. We will take steps for this,” said Shah.
Li-Cycle Holdings Corp ( LICY.N ), ioneer Ltd ( INR.AX ) and Syrah Resources Ltd ( SYR.AX ) received loans from Shah’s office last year.
Ioneer ( INR.AX ), which is building the Rhyolite Ridge lithium project in Nevada, said one of its vendors violated a minor exploration permit less than a month after receiving the loan. Shah said given the complexity of many of the projects his office supports, such minor infractions are not deal-killers.
“We expect everyone to meet all applicable rules and regulations,” Shah said. “But at the same time, I’m not going to knock them for not getting things exactly right all the time.”
Report by Ernest Scheyder; Edited by David Gregorio
Our standards: Thomson Reuters Trust Principles.
Ernest Shader
2023-03-08 03:16:50
Source – reuters
Translation“24 HOURS”