FINANCING A CLEAN ENERGY ECONOMY
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, and by providing direct loans to eligible manufacturers of advanced technology vehicles and components.
ECONOMIC GROWTH, JOB CREATION & MORE CLEAN ENERGY SOURCES
Specifically, LPO endeavors to:
- Encourage commercial- and utility-scale development and adoption of new or significantly improved energy technologies;
- Fund innovative technologies that reduce greenhouse gas emissions;
- Create jobs by financing the growth of commercial clean energy technologies;
- Provide direct loans to eligible automobile manufacturers and component suppliers for projects that re-equip, expand, and establish manufacturing facilities in the U.S. to produce advanced technology vehicles and components for such vehicles; and
- Protect U.S. taxpayers by only making loans or issuing loan guarantees if we believe there is a reasonable prospect of repayment.
Commercial lenders are often unwilling to finance the first few commercial-scale projects that use a new technology since there is not yet a history of 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, DOE stops providing financing and lets the private market take over.
Learn more about LPO's mission and how it has performed in the LPO Financial Performance report.