US solar firms to receive multi-billion investment

The Solana project

Showing the US' commitment to renewable energy, even more so in the wake of the Gulf of Mexico oil spill, President Barack Obama has announced that $2 billion in loan guarantees will be given to two companies in order to "kick-start" the US solar energy industry.

The two firms, Abengoa Solar and Abound Solar Manufacturing, are already well established in the solar industry and have expansive plans on the horizon in order to capitalize on the investment.

Abengoa, for example, plans to construct the largest solar power plant in the world in Arizona, capable of powering 70,000 homes and drastically cutting CO2 emissions. Known as the Solana project, the solar farm would have an area of 1,900 acres - and by using thermal storage-equipped parabolic trough technology, would have a power output of 280MW. The electricity generated by the plant will be sold to APS for around $4 billion for over the next 30 years.

It would also create 1,500 new jobs for the site's construction with 100 staff positions for its operation.

State-of-the-art solar panels

The second firm, Abound Solar Manufacturing, will utilize their funding on manufacturing state-of-the-art thin film solar panels - the first time such technology has been used commercially. If it goes ahead, it would make the US a major rival to China in the production of solar technology.

From an economic point of view, the solar manufacturing plants that are planned to be built in Colorado and Indiana would create 2,000 construction jobs and 1,500 permanent jobs.

President Obama has often tried to follow through on his election promises of creating more manufacturing and construction jobs in the green power industry, but for many his policy has stalled in recent months with the BP oil spill. Still, with plans to possibly install solar panels on the White House, perhaps the future for Obama's energy policy is green.

Speaking the day before Independence Day, President Obama said, "We're going to to keep competing aggressively to make sure the jobs and industries of the future are taking root right here in America."

It is not the only major investment in renewable energy the administration has made. Last month, the Department of Energy unveiled plans for major investment in US geothermal projects.

Relevant articles:

President Obama "gets serious" about infrastructure | Making fuel from CO2 and solar energy? | Department of Energy to invest in geothermal projects

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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