Green technology stifled by funding woes: experts

subscribe

American innovation needed to reduce the greenhouse gases that cause climate change could be squelched if the government drags its heels in providing incentives and funding for developers, company executives told lawmakers.

Officials of companies involved in solar and carbon capture technologies told the House Select Committee on Energy Independence and Global Warming that their biggest challenge to creating new green technologies was financing, not the science.

"Using proven technology available today, we can produce electricity along with other basic commodities at market prices while sequestering 90 percent of our CO2 (carbon dioxide)," said Frank Smith, chief executive of PurGen One.

His plant chemically converts coal into a synthetic gas and then removes the pollutants and 90 percent of the carbon from the gas, leaving nearly pure hydrogen. The hydrogen is used to produce energy while demand is high, but can alternately be used to produce urea fertilizer, which is sold and adds to profits when electricity demand is minimal.

"The new technology here is in the business model," Smith said. "Everything else is off-the-shelf, proven technology."

But the huge capital costs, coupled with the lack of an established track record, make finding debt financing for new facilities nearly impossible, Smith said.

"Big power plants are hard to finance in the best of times," he added.

Tessera Solar is embarking on a form of solar technology that uses heat from the sun to create energy that's converted into electricity. The company's method emits no greenhouse gases, uses less water than other solar technologies and has high electric efficiency.

But its vice president of marketing and regulatory affairs, Sean Gallagher, said financing could halt deploying this technology.

"It's been six months already since the stimulus package was passed, and we still don't have the loan guarantee guidelines," Gallagher said of the Energy Department's program to fund clean energy projects.

Gallagher urged the department to issue regulations consistent with commercial banking practices and move swiftly to start the next round of solicitations for the program.

Loan guarantees and other financial impetus from the federal government will be critical to getting new green technology projects off the ground, given the current financial situation, panelists said.

"If it weren't for the financial crisis, that would be of less emphasis," Smith said.

First movers, or those first to commit to a new technology, are now facing bankers more afraid of suffering losses, and that fear is making investment from the private sector scant.

Smith told lawmakers reliance on federal funds will not always be necessary. "We're talking about how to get started," he said.

Related News

U.S. Electric Vehicle Market Share Dips in Q1 2024

U.S. Electric Vehicle Market Share Dips in Q1 2024

NEW YORK - The U.S. electric vehicle (EV) market, once a beacon of unbridled growth, appears to be experiencing a course correction. Data from the U.S. Energy Information Administration (EIA) reveals that the combined market share of electric vehicles (battery electric vehicles, or BEVs) and hybrids dipped slightly in the first quarter of 2024, marking the first decline since the onset of the COVID-19 pandemic.

This news comes as a surprise to many analysts who predicted continued exponential growth for the EV market. While overall sales of electric vehicles did increase by 7% compared to Q1 2023, this growth wasn't…

READ MORE
acciona-energia-launches-280-mw-wind-farm-in-alberta

ACCIONA Energía Launches 280 MW Wind Farm in Alberta

READ MORE

meeting in halifax

Canada to spend $2M on study to improve Atlantic region's electricity grid

READ MORE

map of canada ev sales

Atlantic Canadians less charged up to buy electric vehicle than rest of Canada

READ MORE

usa generation

Solar + Wind = 10% of US Electricity Generation in 1st Half of 2018

READ MORE