The US Department of Energy has laid out plans to offer up to $8 billion (£5.25bn) in loan guarantees to develop technologies that cut carbon emissions from extracting and burning fossil fuels.
It will support new or significantly improved fossil fuel energy projects and facilities – such as carbon capture, low carbon power systems and efficiency improvements – that reduce emissions of carbon dioxide, methane and other greenhouse gas pollution.
Energy Secretary Ernest Moniz (pictured) said: “These investments will play a critical role in accelerating the introduction of low carbon fossil fuel technologies into the marketplace and reduce greenhouse gas pollution. Fossil fuels currently provide more than 80% of our energy and adopting technologies to use the cleanly and more efficiently is critical to our all-of-the-above approach.”
The Energy Department has issued a draft proposal for the programme and is looking for suggestions that could end up expanding the types of technologies that would be eligible for a loan guarantee. It plans to finalise the proposal and issue a formal request for project proposals later this year.
Earlier this week the US Government also announced funding for four advanced nuclear reactor projects in the country.