President Joe Biden's administration is working to finalize $25 billion in clean energy loans, cementing a key climate initiative before President-elect Donald Trump takes office with plans to slash such programs, Politico reported.
The Department of Energy's Loan Programs Office, a crucial arm for advancing green energy technologies, has become a focal point of the administration's push. Pending loans include $9.2 billion for electric vehicle battery production in Kentucky and Tennessee, $1.5 billion for sustainable aviation fuel in South Dakota, and $1 billion for EV charging infrastructure nationwide.
With 16 pending loans, Biden faces opposition from Trump's incoming DOE leadership.
Trump's nominee for energy secretary, Chris Wright, a fracking executive, has criticized government subsidies for renewable energy. Wright's skepticism adds uncertainty for companies like Plug Power, which is seeking a $1.7 billion loan to develop "green hydrogen" plants.
"We know it's in our best interest to have this resolved by Jan. 20," said Plug Power CEO Andy Marsh, referencing Trump's inauguration.
Since its establishment in 2005, the LPO has supported emerging clean energy technologies. While it gained attention for funding Tesla's early growth, the program also faced backlash after the bankruptcy of solar company Solyndra, which received a $535 million loan guarantee.
Under Biden, the office has surged to prominence, announcing $37 billion in loans or guarantees for 29 projects. Led by clean energy entrepreneur Jigar Shah, the LPO has approved 12 loans worth $12 billion and 16 conditional commitments totaling $25 billion.
Shah, a vocal advocate for bridging the gap between innovation and financing, has emphasized the office's role in supporting projects that reduce reliance on Chinese imports and curb emissions.
DOE has transformed under Biden into a "commercialization engine," Shah posted on X recently.
The incoming Trump administration has signaled plans to cut federal spending, including funds for Biden's climate initiatives. During Trump's first term, the LPO issued only one loan, backing a nuclear reactor project in Georgia. Trump has also proposed slashing the office's budget.
A Politico review revealed that 12 pending loans worth $21 billion are in Republican-held districts. Analysts suggest this geographical factor may shield some projects from outright cancellation.
"These are states that are important to the Republican demographics," said Heather Reams, executive director of Citizens for Responsible Energy Solutions.
Still, some projects face scrutiny, particularly those with ties to China or those that Republicans view as excessive spending. GOP lawmakers have criticized certain deals, including a $1.7 billion loan to Plug Power and a $1 billion loan to EVgo for EV charging infrastructure.
The Biden administration has ramped up loan approvals recently, with seven finalized since September. DOE officials have expressed confidence in the office's bipartisan appeal, highlighting projects in nuclear energy, carbon capture, and critical minerals that align with Republican priorities.