Fossil Energy Loans To Support Climate Plan

The Department of Energy is seeking comments on a draft solicitation for $8 billion in loan guarantees to encourage and support new fossil energy projects and facilities. The solicitation is part of President Barack Obama’s recently announced climate action plan to cut greenhouse gas emissions. The areas DOE is considering supporting include advanced carbon capture technologies, low-carbon fossil-fuel-based electricity generation systems, new technologies that supply fossil fuels without generating methane or other greenhouse gases, and new energy-efficient technologies directed to fossil-fuel processes. Comments will be accepted until early September and the final solicitation will be issued in the fall, according to Energy Secretary Ernest J. Moniz. Overall, Moniz describes a shift to renewable energy in the U.S. but stresses that fossil fuels still provide 80% of today’s electricity and they will continue to do so in decades to come. Once selected, these projects will join some $34.4 billion in other DOE loan guarantees, according to department officials.