Rogers calls private sector key to scaling cleantech

Matt Rogers has a lot of new best friends in the cleantech sector these days.

The senior advisor for the U.S. Department of Energy, who reports to U.S. Energy Secretary Steven Chu, oversees disbursement of energy- and environmental-related stimulus funding.

As a keynote speaker at the Cleantech Group’s Cleantech Forum XXIII in Boston today, he provided an update on the U.S. Recovery Act, how much has been spent so far and some its implications on the cleantech sector.

He noted Sept. 5 marked the 200th day since the Recovery Act was passed, and claimed it’s already working, creating 500,000 to 700,000 new American jobs, while contributing to gross domestic product growth.

One third of the funds are being spent on tax cuts, another third on emergency relief, while the remaining third is being put toward building infrastructure and technology. The last third includes the energy component, Rogers said.

Rogers presenting at the Cleantech Forum (photo) »

Rogers said the $36.7 billion going toward America’s energy and environmental future is being spent on contracts and grants as well as renewable energy loans. As of this morning, he said $11.1 billion had been obligated and $600 million has been spent by the recipients, but with a three-month lag time. The funding is being allocated toward everything from advanced batteries and Clean Cities grants to transportation electrification projects.

“It’s not a bailout program,” he said. “It’s a way to accelerate our path to the energy and environmental future.”

However, he cautioned that “the Recovery Act is a down payment, and it’s only a down payment.” He said it’s up to the private sector to continue carry the load and fund innovation from there.

Rogers set the expectation of an exciting next few months, promising a funding announcement from the DOE approximately every 10 days across the wind, solar, smart grid, carbon capture sequestration and geothermal areas, as well as $2.4 billion in tax credits for manufacturing clean energy.

“We’re trying to be very transparent in what we do,” he said, which has also caused very public mistakes such as in Delaware where the state didn’t receive stimulus funding for which it was eligible.

He said the DOE has been looking for companies that are ready to launch on a commercial level, with an example being Fremont, Calif.-based solar cylinder developer Solyndra, which received a $535 million loan guarantee in March (see Solyndra nabs $535M DOE loan guarantee for 500 MW factory).

The company was able to raise equity equal to 27 percent of the project's cost, freeing up the DOE’s $535 million loan for the remaining 73 percent. The $198 million equity round was led by Argonaut Private Equity (see Solyndra raises $198M, breaks ground on 500 MW plant).

Rogers said he’s been excited by that combination of government and private sector funding.

“It’s that balance that works really well,” Rogers told the Cleantech Group today following his keynote, pointing to A123Systems, which specializes in battery technology for hybrid and electric vehicles, which has also received $289 million in DOE grants plus cost sharing (see Johnson Controls scores $299M from DOE for auto batteries).

“All signs are they are going to be able to meet that cost share,” Rogers said.

Rogers said there are more than 1,000 reviewers from educational, technical and business sectors working to ensure the awarded projects deliver on the DOE’s expectations. The intent, he said, is to help the United States to become a global leader when it comes to energy and environmental technologies.

He said the selection process has been highly competitive.

“Most folks that apply won’t be awarded funds because of the oversubscription,” Rogers said, noting that the DOE had received 10 times the number of applications it was expecting in some clean technology sectors.

The Cleantech Forum continues today, ending Sept. 10.