The Energy Department has not been immune as supply chain disruptions wreak havoc across several industries, an agency official told the Washington Examiner.
The industry has seen firsthand the push for new projects that bring energy manufacturing back to U.S. soil and offer more alternatives to fossil fuels amid the Biden administration‘s fight for clean energy, according to Jigar Shah, director of the Energy Department’s Loan Programs Office.
“We have an entirely new generation of technologies that are misunderstood,” Shah said on the Plugged In podcast, adding that it is now easier than ever to fund those projects through loans.
Shah pointed to innovation and efficiency in reducing greenhouse gas emissions as the only two criteria needed to submit a loan request to his office and be recognized, but he noted that salesmanship is also key to approval.
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“What we’re looking for is a pretty simple explanation around what they’re doing,” he said. “Like, give me the two-page, you know, business plan.”
Shah added that there’s an appetite for ramping up production in the United States amid supply chain woes, pointing to Tesla’s reliance on manufacturing in the U.S. as the cause of the company’s strong domestic sales figures.
“You’re seeing a renewed commitment on those industries, as well as others, to really bring the supply chain here for no other reason than it reduces the complexity of their businesses,” Shah told the Washington Examiner, noting that it has been a largely bipartisan effort.
“I think you’re gonna see big announcements this year and next year around folks that are going to be, you know, manufacturing here domestically,” he said.
The Loan Programs Office is often the last hope when it comes to raising commercial debt to fund these big energy projects.
The office has issued more than $35 billion of loans and loan guarantees for more than 30 projects to date, according to the agency’s website. The projects range from nuclear construction to electric vehicle manufacturing to accelerating solar and wind power.
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The Plugged In podcast, hosted by former Federal Energy Regulatory Commission Chairman Neil Chatterjee, brings on key players, from lawmakers to federal employees to industry experts, to keep our audience up to speed on the latest energy issues facing the country and the planet.
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