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Obama Announces $2 Billion For Solar Energy Projects

| Wednesday July 7th, 2010 | 6 Comments

President Obama announced Saturday in his weekly radio address that the Department of Energy has agreed to back nearly $2 billion in loans to two solar power companies for projects in Arizona, Colorado and Indiana.

The loan guarantees will go to two firms: Spanish solar firm Abengoa Solar Inc. will receive a $1.45 billion loan guarantee to construct a 280 megawatt concentrating solar power facility in Solana, Arizona, while Colorado-based solar start-up Abound Solar will receive a $400 million guarantee to finance factory expansions in Colorado and Indiana.

Abengoa’s concentrating solar power plant will be the first in the US to use a thermal energy storage system to store electricity generated during the day for use after the sun has set.

The plant, which will provide approximately 1,600 construction jobs and 85 permanent jobs, will use mirrored parabolic troughs that collect the sun’s energy to heat fluid contained in pipes running the length of the troughs. The superheated fluid is then circulated through a steam turbine to generate electricity, and to heat salt in an enormous tank, which traps the heat to run the turbine at night or when the sky is overcast.

Abound Solar will use its loan to expand manufacturing in Longmont, Colorado and in Tipton, Indiana. The Tipton plant will be in a factory formerly home to a Chrysler parts manufacturer. Combined, the plants are expected to generate 1,500 jobs.

Questioning company forecasts…

Ambitious Abound Solar is attempting to compete with one of the world’s most successful solar panel companies, First Solar, maker of low-cost thin film solar panels. Abound claims it has invented a completely automated process for manufacturing thin film panels “allowing the company to convert sheets of glass into solar panels in less than two hours without human labor,” according to an interview CEO Pascal Noronha gave to Reuters last year.

Yet in the same interview, the company also claimed its manufacturing facility would be producing 65 MW worth of panels by the end of 2009, and 200 MW by the middle of 2010. But according to a spokesperson reached today, the company is still “ramping up” the 65 MW line which “will be done by the end of the year” — which is what they said last year.

Of course, optimistic forecasts followed by delays are hardly rare in the start-up business – especially in cleantech – and at any rate the DOE is apparently unconcerned with the delay, as evidenced by the fresh loan. Clearly, plenty of people are excited about Abound Solar’s potential.


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  • Lmcbee5

    Hmm… so let me get this right. Obama is going to give a company from Spain $2 billion to build a solar collector system in the Arizona. Can I stress a company from Spain anymore? This doesn't smell right like everything else he is doing. At least Bush blew all that money on US companies or securing oil.

    • Bkaibni

      It is a loan and will be payd back. As long as it creates jobs and pay taxes, it should b fine. Kets just hope they will open bullet train manufactoring in the US, that will create mega jobs, here you use US auto makers and RV in indiana or foreign cpmpany because US don't have bullet train technology

    • nickaster

      Why does it matter if the company is from Spain? It's a loan.

    • guest

      You mean US companies like BP? Or Haliburton? Neither of which are US companies?

    • Alphanumberb5

      Hmm so if… for some reason not in any way related to 8-years of bush policies of stifling clean energy research… there aren't any US companies with the technology or infrastructure of Abengoa capable of building this plant, we should continue to live in the dark ages?

      You're right. Who needs clean, renewable energy when we could just as easily go to war in Iraq or drill in the gulf to fuel our mid-sized SUVs for the next few hundred years?

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  • Wazzoo12

    Let's see, AZ gets clean Hydro Electric Power from Nevada so this new clean energy is saving us what in carbon emmissions? Zero and for 85 permanent jobs?

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