In his weekly video address Friday, President Obama announced nearly $2 billion in loan guarantees to finance two distinct solar energy projects.
The largest of the two awards is a $1.45 billion loan guarantee to Abengoa Solar Inc. to finance the construction and start-up of a concentrating solar power generating facility. Abengoa Solar is a division of Spanish company Abengoa (ABG.MC)
The Solana, Arizona plant will add 250 megawatts (MW) of capacity to the electrical grid using parabolic trough solar collectors and an innovative six-hour thermal energy storage system–the first of its kind in the country.
In May, Abengoa brought a similar, 50-MW plant online in Spain.
"After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs right here in America," said President Obama.
Electricity from the project will be sold through a long-term power purchase agreement with Arizona Public Service Company.
Abengoa Solar estimates that the Solana project will employ approximately 1,600 workers during the construction phase of the project and create over 80 permanent solar jobs for the plant’s operation.
Over 70% of the components and products used for Solana will be made in the United States.
Solana will employ solar trough technology using parabolic shaped glass mirrors that direct sunlight onto receiver tubes that heat the fluid inside to over 700 degrees Fahrenheit. The heat is then used to turn steam turbines. The project also includes a thermal energy storage system that will allow Solana to produce electricity after the sun has set.
The Solana project will bring the total amount of concentrating solar power (CSP) supported by the Department to nearly 650 MW.
Thin-Film solar Manufacturing
President Obama also announced the offer of a loan guarantee of $400 million to Abound Solar Manufacturing, LLC to manufacture thin-film solar panels.
Funded by the American Recovery and Reinvestment Act, this project includes two facilities, one in Longmont, Colorado and the other in Tipton, Indiana. The Indiana facility will occupy a new factory originally constructed for a Chrysler auto parts supplier that was never able to move in due to the economic downturn. The company anticipates that the project will create approximately 2,000 jobs during construction and 1,500 permanent solar jobs.
The company will use proprietary manufacturing technology developed jointly by Colorado State University, the National Renewable Energy Laboratory and the National Science Foundation. They will produce photovoltaic panels using an innovative process in which thin films of Cadmium-Telluride are deposited onto the glass panels. This will be the first time the manufacturing technology for
Cadmium-Telluride panels is deployed commercially anywhere in the
world.
DOE said the technology offers numerous improvements over existing manufacturing methods and reduces overall product costs. The processes are also expected to create significant enhancements in film quality, device efficiency and stability, and product yield.
Upon completion, the project will be able to manufacture enough panels each year to support up to 840 megawatts (MW) of new solar power annually. The project is expected to reach full capacity by 2013.
The Department of Energy has issued conditional commitments for loan
guarantees to support twelve clean energy projects.
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