The US Department of Energy (DOE) has finalised a $1.2bn loan guarantee to support the development of the 250MW Mojave Solar Project (MSP) in San Bernardino County, California.
The project is being managed by Abengoa Solar and will utilise concentrated solar thermal technology which will, once the plant is complete, increase the US' capacity from this technology by around 50 per cent. Development is supported by a 25-year power purchase agreement with the Pacific Gas & Electric company.
An estimated 80 per cent of development costs, including capital equipment and labour, are to be sourced in the US.
Steven Chu, US Energy secretary, said, 'Investments in solar generation facilities like the Mojave Solar Project are critical to our effort to create good, clean energy jobs in America and compete with countries like China in the global clean energy race. This project will supply local utilities with energy, help drive down the cost of solar power, and fund more than 900 American jobs, all at minimal risk to the taxpayer.'
The DOE originally announced support for the project in June when it announced that it will also offer $681m to support the 250MW Genesis facility being managed by NextEra Energy Resources.