INVESTING IN AMERICAN ENERGY
The mission of LPO is to accelerate the domestic commercial deployment of innovative and advanced clean energy technologies at a scale sufficient to contribute meaningfully to the achievement of our national clean energy objectives—including job creation; reducing dependency on foreign oil; improving our environmental legacy; and enhancing American competitiveness in the global economy of the 21st century.
LPO executes this mission by guaranteeing loans to eligible clean energy projects through its Title XVII program and by providing direct loans to eligible manufacturers of advanced technology vehicles and components through its ATVM program.
THE IMPORTANCE OF LPO’S MISSION
Commercial banks and bondholders are often unwilling to finance the first few commercial-scale projects that use a new clean energy or advanced vehicle manufacturing technology since there is not yet a history of credit performance or operation. As a result, the initial commercial deployment of these technologies is often limited by a project developer’s inability to secure sufficient long-term debt financing to build the project.
LPO was established to fill this critical role in the marketplace by financing the first deployments of a new technology to bridge the gap for commercial lenders. Once the technology is proven at commercial scale through the first few projects, the Department of Energy (DOE) stops providing financing and lets the private market take over.
Through its issuance of loans and loan guarantees, LPO plays a critical role in bridging the commercial financing gap that otherwise may prevent U.S.-based innovative clean energy projects and advanced technology vehicle manufacturing facilities in the U.S. from being successful.
Therefore LPO’s loan and loan guarantee programs therefore play a critical role in realizing the potential of these technologies, moving the United States towards a clean energy future as a global leader in clean energy technology while also creating economic opportunities at home and addressing the threat of climate change.