"Biden Administration Offers $1 Bln Loan Guarantee For Hydrogen Project"

"WASHINGTON - The Biden administration said on Thursday it has offered Monolith Nebraska LLC an up to $1.04 billion conditional loan guarantee for a project to make clean hydrogen, in its first use of an office that has tens of billions of dollars in financing.

The financing from the Department of Energy's Loan Programs Office (LPO) aims to help Monolith expand its Olive Creek plant to convert natural gas into hydrogen for making products like fertilizer. The plant will also make carbon black, a product used in making tires and other rubber products. The project aims to slash carbon emissions by cutting the use of fuel oil to make those products, the department said.

The LPO has more than $40 billion in financing for innovative energy projects that can help tackle climate change. Congress authorized LPO in 2005 amid concerns about domestic energy supplies. The administration of former President Donald Trump rarely used the LPO, besides financing for Georgia's Vogtle nuclear power plant."

Timothy Gardner reports for Reuters December 23, 2021.

Source: Reuters, 12/24/2021