Abengoa Closes $1.2 Billion Financing for the Mojave Solar Project and Starts Construction
- Loan proceeds will be used for the construction of the 280 MW (gross) Mojave Solar Project, utilizing advanced technology manufactured in America
DENVER, Sept. 14, 2011 /PR Newswire/ -- Abengoa, the international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, announced today that it has finalized a $1.2 billion loan guarantee with the Department of Energy to build the Mojave Solar Project. This concentrating solar power (CSP) plant will use advanced proprietary parabolic trough technology that will increase the plant's efficiency and lower the total cost.
With a total investment of approximately $1.6 billion, the 280 MW Mojave Solar Project will create more than 900 construction and permanent operations jobs and over a thousand direct and indirect service and manufacturing jobs throughout the supply chain that will span the country. Construction has already begun and the Mojave Solar Project will come online in 2014.
The Mojave Solar Project demonstrates America's commitment to build an American-made solar industry which will provide energy independence, much-needed jobs, and economic development in the currently weak manufacturing sector.
The Department of Energy (DOE), through the Loan Programs Office, issued the loan guarantee to support this project. Abengoa signed a power purchase agreement with Pacific Gas & Electric (AMEX: PCG-PE), one of America's largest electric utilities, to buy the energy produced by the Mojave Solar Project for a period of 25 years. The power purchase agreement is pending approval by the California CPUC.
The plant will be located 100 miles northeast of Los Angeles, near Barstow, California. The Mojave Solar Project will produce enough energy to serve more than 54,000 households and will prevent the emission of more than 350,000 metric tons of CO2 per year when compared to a natural gas burning power plant. The construction and operation of the Mojave Solar Project will bring many economic and environmental benefits to California and will support the state's goals for clean energy.
California is meeting its renewable energy standards through various energy technologies, and the addition of the CSP Mojave Solar Project will provide additional value to PG&E's portfolio. By using concentrating solar technology, integration costs associated with other renewable energy resources will be avoided.
The plant's construction and operation will produce much-needed tax revenue for the surrounding communities and the state of California. Abengoa estimates that the Mojave Solar Project will create more than 900 construction and permanent operations jobs. In addition, over a thousand direct and indirect jobs will be created and/or preserved through the service and manufacturing needs to construct the Mojave Solar Project. More than 80% of the equipment, supplies and services required to build the Mojave Solar Project will be of U.S. origin.
Abengoa's supply chain, initiated by its other plant, Solana, now spans 22 states with 29 contracted suppliers. The need for key components and related services creates the foundation upon which to expand solar energy technology manufacturing capabilities to support current and future CSP projects in the U.S., as well as to export to other countries. Through this expansion, thousands of indirect jobs are created across the country and in states not normally associated with concentrating solar power, such as Kentucky, Illinois, Ohio, Minnesota, and Missouri.
Abengoa's Solana, a 280 MW (gross) project already under construction outside of Phoenix, Arizona, will supply 70,000 Arizona households with clean energy, while employing between 1,600 and 1,700 people during its construction phase.
Abengoa is currently building 1,010 MW of solar plants all over the world and, with an additional 393 MW already operating, it is the only company in the world building and operating both trough and power tower CSP plants. The Mojave Solar Project plant will be Abengoa's 16th CSP plant.
Abengoa (MCE: ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. (www.abengoa.com)
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