What’s at Stake: This new plan provides an available $10.9 billion dollars  in loan guarantees for approved advanced nuclear research, $2 billion of which is reserved specifically for front-end projects. The LPO is specifically interested in technologies in the areas of advanced nuclear reactors, front-end nuclear technology, small modular reactors, and uprates or upgrades at existing nuclear facilities. The funding cannot be used for research on commercial technologies, defined as a technology which is already utilized in 3 or more commercial projects within the United States.

Details: To be considered, a project must be eligible under the LPO’s Title 17 Energy Loan Guarantee Program. This means a project must: One, utilize innovative technology. Two, a project must reduce, avoid, or requester greenhouse gas emissions. Third, the project must be located within the United States, and Fourth, the project proposal can provide at least a reasonable prospect of repayment. To be considered an innovative technology, a technology must comprise of a new development technology, or at least one improvement to the productivity or value of an existing technology. This can also include advanced IQ solutions which deal with innovative technologies, for example artificial intelligence used for utility safety and security. The LPO will also consider filling in the financial gap for projects which come to them with limited investors, but the market doesn’t have the capacity for their capital needs.

More: The Loan Guarantee process consists of 5 parts, which we have been told can be taken care of in as little as 8 weeks, or can stretch out over the length of several months. The length of the process can be expedited by early and earnest engagement from the researchers, but can vary significantly based on a projects predictability of cash flows, and DOE estimates of the projects revenues. The 5 steps are the pre-application process, the formal application submission, due diligence & term sheet negotiation, the credit approval process, and finally loan closing & project monitoring. During the formal application submission, the LPO has assured that they will work with proposal submitters to analyze different options to find the lowest cost for the lowest up front sum. As a project approaches a close, the LPO will help bring in lenders and investors for the research. Projects do not have to be of singular identity either, as the LPO has projects which are laterally related to CCUS or other energy projects, portfolio projects, and diversified projects. The LPO has stated that the DOE will not be taking on projects which have naked commercial risks.

For more on the Department of Energy’s Loan Program Office Advances Nuclear Energy Projects, click here to visit their website.