The Energy Department will contribute a 535 million USD loan guarantee to Solyndra Inc. It means the solar-panel manufacturers can make up photovoltaic panels at a plant that will hire 1,000 employees, a person having deep knowledge with decision told.
The Energy department proposed the closely held Fremont, California, company the loan guarantee earlier this year in March, pending Solyndra securing its share of the funding. Vice President Joe Biden declared the award thru satellite yesterday. Energy Secretary Stephen Chu also attended a ceremony in Fremont.
Revenue for the loan guarantee got from the economic stimulation program ratified by President Barack Obama in February. The Energy Department is setting up to administer about 83 billion USD in loan guarantees for energy plans that cut down greenhouse gas discharges
The loan guarantee gets over 73 pct of the plant’s construction cost and the company is accountable for the balance, Stanco told.
The plant will hold a manufacturing capability of 500-MW per year. In 2008, solar power provided the energy for 514-MW of consumption, or a fraction of 1% of U.S. energy consumption, told by the Energy Department.
The company stated in March the plan will generate almost 3,000 construction jobs as well as 1,000 long-term jobs.
Toyota Motor Corp. stated few days ago it will close a Fremont plant it has been running with General Motors Corp. for 25 years. The automobile factory has 5,400 people; this includes about 4,600 union workers.
Lawmakers, seeking to promote a shift to clean-energy origins like wind and solar, have looked for to extend government finances by applying loan guarantees rather than grants or direct backup.
Solyndra’s supporters include Richard Branson’s Virgin Group Ltd. Solyndra stated earlier this year in July it received more than 2 billion USD in orders and is making shipments to clients in Europe and the America.