Slide 1: The Department of Energy’s Loan Programs Office (LPO) issues loans and loan guarantees to finance deployment of innovative energy projects and advanced technology vehicle manufacturing facilities in the United States. Commercial banks and bondholders are often unwilling to finance the first few commercial-scale projects that use a new technology since there is not yet a history of credit performance or operation.
As a result, the initial commercial deployment of new energy technology 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.