Next round of DOE loan guarantee companies look to follow Solyndra

On the heels of Fremont, Calif.-based Solyndra closing its $198 million equity round last week, the U.S. Department of Energy (DOE)’s Steve Spinner said it was fortuitous timing given Toyota closing its plant in the Silicon Valley area.

Spinner was a featured speaker at the Cleantech Group’s Cleantech Forum XXIII in Boston today as part of a stimulus and policy workshop. Spinner, the DOE’s small business loan guarantee adviser, said that of the six loan guarantee deals the department has done, Solyndra’s was the first to close (see Solyndra nabs $535M DOE loan guarantee for 500 MW factory and Solyndra raises $198M, breaks ground on 500 MW plant).

“We liked the taste of it,” he said.

He said Solyndra is expected to bring at least 3,000 construction jobs to build its 500 megawatt factory in Milpitas, Calif., near the company's first facility, as well as 1,000 permanent jobs. It's timely given Toyota's plans to close its Fremont-based manufacturing facility, known as Nummi, which is expected to result in the loss of more than 4,500 jobs.

Solyndra raised the $198 million in equity, equal to 27 percent of the project's cost, freeing up a $535 million loan from the U.S. Treasury Department for the remaining 73 percent.

Following Solyndra’s lead, other deals that could follow include Beacon Power (Nasdaq:BCON) and Berkeley, Calif.-based Nordic Windpower.

Beacon Power has been provided $43 million in debt financing from the U.S. Treasury’s Federal Financing Bank of its estimated $69 million total project cost. Nordic has received a conditional commitment for a $16 million loan guarantee.

Under the Advanced Technology Vehicles Manufacturing Loan Program, the DOE has also awarded three conditional commitments to Ford Motor (NYSE:F) for $5.9 billion, Nissan North America (Nasdaq:NSANY) for $1.6 billion, and Tesla Motors for $465 million (see Who is next for $17B in DOE auto loans?).

“These are loans. The government looks at loans completely different than grants,” Spinner said. “These are to be repaid.”

The panelists cautioned companies in the audience to apply for the upcoming energy and environmental-related loan deadlines only when they are ready.

“It helps to be a known entity—technology that the DOE and Congress are familiar with and perceive ... as an industry leader,” said Curt Rich, head of the public policy practice group at VanNess Feldman.

Spinner said he’s not overly concerned about the remaining DOE funds being overly subscribed, but suggested that the best technologies should apply early (see Rogers calls private sector key to scaling cleantech).

Cleantech developments making news in the past 24 hours

• Metabolix, ADM to open new bioplastics factory
• Rockwool nears construction on Indian insulation factory
• Two Israeli wastewater firms to locate in Michigan
• Al Gore: Super grid is critical to combating the climate crisis
• A quest for CO2 and O2 optimal management with biofuel from algae

View the last week of cleantech developments here | Subscribe to full feed