DOE issues draft loan guarantee solicitation for up to $12.6B for advanced nuclear energy projects
30 September 2014
The US Department of Energy (DOE) has issued a draft solicitation that would provide up to $12.6 billion in loan guarantees for Advanced Nuclear Energy Projects. Once finalized, these loan guarantees will provide critical financing to help commercialize advanced nuclear energy technologies, supporting projects that are often unable to secure full commercial financing due to their scale and use of innovative technology.
Authorized by Title XVII of the Energy Policy Act of 2005, the Advanced Nuclear Energy Projects Solicitation would provide loan guarantees to support construction of innovative nuclear energy and front-end nuclear projects in the United States that reduce, avoid, or sequester greenhouse gas emissions. While any project that meets the eligibility requirements may apply, the Department has identified four key technology areas of interest in the draft solicitation:
- advanced nuclear reactors;
- small modular reactors;
- upgrades and uprates at existing facilities; and
- front-end nuclear projects.
The Department welcomes public comment on a range of issues and will consider public feedback provided during the 30-day public comment period in defining the scope of the final solicitation. The draft solicitation can be found online at http://www.energy.gov/lpo.
Once the solicitation is finalized, the Department’s Loan Programs Office (LPO) will have open solicitations in four areas, including the $8 billion Advanced Fossil Energy Projects Solicitation; the $4 billion Renewable Energy and Efficient Energy Projects Solicitation; and the $16 billion Advanced Technology Vehicle Manufacturing (ATVM) loan program.
Currently, LPO supports a diverse portfolio of more than $30 billion in loans, loan guarantees, and commitments, supporting more than 30 projects nationwide. The projects that LPO has supported include one of the world’s largest wind farms; several of the world’s largest solar generation and thermal energy storage systems; and more than a dozen new or retooled auto manufacturing plants across the country.
More and more hand outs for Nuke and Fossil energies ($20+B) and very little for REs ($4B)?
Posted by: HarveyD | 01 October 2014 at 07:30 AM
Think about subsidies for energy developments this way: how much energy are you going to get per $$ of subsidy, and how useful is that energy going to be? Nuclear power plants provide huge amounts of energy 24/7 with very high capacity factors. Nuclear is very low carbon. Nuclear has a very small footprint. Your subsidy dollars are being used much more effectively supporting nuclear than by supporting the collection of diffuse, intermittent energy from wind or solar.
Posted by: Nick Lyons | 01 October 2014 at 07:55 AM
Hey Nick! You forgot to mention all those solar and wind farm disasters displacing populations and turning cities into ghost towns! Too bad private capital does not see the wisdom of your perspective without socialist government guarantees...
Posted by: John J. McAvoy | 01 October 2014 at 12:35 PM
Hey John! Did you know that there is a wind turbine accident about every other day with a blade failure, outright tower failure or a major fire about every week now. Some of the blade failures have resulted in blade parts being throw more than a mile.
http://www.caithnesswindfarms.co.u/AccidentStatistics.htm
I would far rather live near a nuclear power plant than a wind farm.
Posted by: sd | 01 October 2014 at 02:52 PM
@HarveyD
These are loan guarantees, not exactly handouts (well. potentially a handout if the loans go bad).
Solar is still getting a 30% federal rebate.
Currently wind isn't getting much love, but the federal government *is* still paying out 2.2 cents per kilowatt-hour production tax credits on already build wind turbines (and that credit runs 10 years).
Once again these are loan guarantees, like the $6.5 billion loan lent to build Vogtle's two now AP1000 reactors. The idea is that they'll be paid back.
Considering the pipeline of proposed projects for wind even after its subsidy cancellation shows wind doesn't need those subsidies any more.
Posted by: NewtonPulsifer | 01 October 2014 at 03:08 PM
I hope they fund Molten Salt Breeders soon. We had the Clinch River program until Clinton canceled it...BIG mistake IMO.
Posted by: SJC | 02 October 2014 at 01:13 PM
We don't need molten-salt breeders any time soon. Terrestrial Energy (Dr. David LeBlanc) and his team noted that trying to certify a brand-new fuel and deal with the proliferation issues of a breeder made it far too costly for a first product. They're aiming at the rough range of 30-300 MW(th) and trying to undercut FFs for process heat by making the unit cheap, rugged and foolproof.
If we're lucky, we'll be getting our MSRs from Canada. If we're unlucky, we'll be getting them from China.
Posted by: Engineer-Poet | 02 October 2014 at 07:41 PM
Russia is far ahead of the U.S. on breeders, India and China also. We can use our 700,000 tons of depleted uranium UF6 that is just laying around leaking. It would power the U.S. for hundreds of years without lots of long term waste. Since this takes decades to commercialize, the sooner we resume the better.
Posted by: SJC | 02 October 2014 at 08:48 PM
New improved Nuclear Reactors sound good or ideal on paper but it takes lot of $$$B and time (many years if not decades) to design, develop, test, get approved, build and finally commission.
Secondly, getting the support of the majority may take a few more decades.
Meanwhile, USA and Canada may have to rely on a mix of more NGPPs, Wind and Solar plants. Germany and Japan may show the way to do it.
Posted by: HarveyD | 05 October 2014 at 11:30 AM