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The US Energy Department has offered California’s largest utility PG&E a loan of up to USD 15 bn for its projects, pending final approval, Bloomberg reports. The funding would be the largest to come through the Energy Department’s Loan Programs Office. The loan could be halted unless it is finalized before the inauguration of the Trump administration on 20 January.
The details: PG&E would use the money to finance its portfolio of projects, including adding capacity to its hydroelectric dam network, developing new batteries, upgrading its transmission network, and delving into the use of virtual power plants. The loan will also contribute to the company’s plans to mobilize USD 63 bn for wildfire risk reduction and grid upgrades.
MEANWHILE- Watchdog warns of oversight issues with US green loans: The Energy Department’s watchdog has also recommended that Biden’s ‘USD 400 bn green bank’ to suspend all pending loans and guarantees temporarily pending reviews, Bloomberg also reported. In a memo (pdf) to the Energy Department, the watchdog cited issues of conflict of interest and the lack of proper tracking mechanisms that ensure a “regulatory and contractually compliant and effective system.
Orsted partially divests from three US onshore assets: Denmark-based Orsted is divesting a 50% equity stake in its three US onshore projects to major renewables private investor Energy Capital Partners (ECP) for USD 572 mn, the company announced. Orsted will still operate the projects and maintain ownership of the remaining 50% stakes.
The details: The sale includes two solar farms in Texas — the 468 MW Mockingbird Solar and 250 MW Sparta Solar — as well as Arizona’s Eleven Mile Solar Center, a hybrid project featuring 300 MW of solar capacity and a 300 MW battery storage system. All projects began operations this year, with tax equity partnerships and power purchase agreements already secured.
This isn’t Orsted’s first divestment move this year. In October, the company sold a 12.45% minority stake in four UK offshore wind farms to Brookfield for USD 2.28 bn. That same month, Orsted sold a 9.8% stake in the company to Norway’s Equinor for USD 2.5 bn.
Orsted has been struggling over the last year, having recorded USD bns of write-downs due to problems with offshore wind projects in the US.
Mauritania’s iron producer SNIM snaps USD 150 mn loan for decarbonization + expansion: The African Development Bank has approved a USD 150 mn senior loan to the Mauritanian state-owned iron ore producer Société Nationale Industrielle et Minière (SNIM) to support the company’s USD 467 mn expansion and decarbonization program, according to a press release.
Decarbonization + climate resilience in focus: The investment includes the construction of a 12 MW photovoltaic solar plant to reduce the carbon footprint of its mining operations. The investment will also incorporate climate resilience measures, with the Global Center on Adaptation tapped to provide technical support to help the company conduct climate change risk assessment to boost logistics and operations against future climate challenges.
Economic backbone: SNIM contributed 9% of Mauritania’s GDP, 14% of government revenues, and 37% of its export value in 2023. As Africa’s second-largest iron ore producer, it plays a key role in intra-African trade, supplying iron ore to North African markets.
