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A worker oversees production at Abound Solar’s Longmont, Colorado, factory which got a boost from DOE.
Credit: Abound Solar

President Obama announced on July 3 a $400 million conditional loan guarantee to Abound Solar Manufacturing for the assembly of state-of-the-art thin-film, cadmium-telluride solar panels. With this project, this new manufacturing technology will be commercially deployed for the first time ever. The project will include facilities in Longmont, Colorado, and Tipton, Indiana. The company anticipates the project will create approximately 2,000 jobs during construction, as well as 1,500 permanent jobs. In Indiana, Abound will occupy a new, unused factory originally constructed for a Chrysler auto parts supplier.

Using proprietary manufacturing technology developed jointly by DOE’s National Renewable Energy Laboratory, Colorado State University, and the National Science Foundation, Abound will produce photovoltaic panels using an innovative process in which thin films of cadmium-telluride are deposited onto glass panels. The technology reduces overall product costs while yielding enhanced film quality and device efficiency and stability. When the facilities reach their expected full capacity in 2013, the company will produce millions of solar panels annually for less than crystalline silicon modules cost. Upon completion, the facilities will be able to manufacture enough panels each year to support up to 840 megawatts of new solar power. DOE has now issued conditional commitments for loan guarantees to support 13 clean energy projects. The loan guarantees are funded by the American Recovery and Reinvestment Act of 2009. See the DOE press release, the DOE Loan Guarantee Program Web site, and the president’s weekly video address with the announcement.

The Solana plant will supply clean electric power to approximately 70,000 homes through a long-term power purchase agreement with Arizona Public Service Company. Abengoa Solar estimates the Solana project will employ approximately 1,600 workers during construction and will create more than 80 skilled permanent jobs during operation. Additionally, two assembly factories will be constructed on the Solana site, and as a result of Solana’s need for more than 900,000 mirrors, a new mirror manufacturing facility will be sited just outside Phoenix in Surprise, Arizona. The Solana project will bring the total amount of CSP supported by DOE to nearly 650 MW. See press releases from DOE and Abengoa, the president’s video announcement, the DOE Loan Guarantee Program Web site, and the Solar Energy Technologies Program Web site

“The Nevada Test Site is about to play a new role in securing America’s future—but instead of testing nuclear weapons, we will test new solar technologies that will help put America on a sustainable energy path,” said Secretary Chu. “Working closely with the Department of Interior, and with the critical leadership of Senator Reid, we will demonstrate technologies that will lower the cost of solar energy, accelerate the pace of innovation, and help build a clean energy economy.”

“President Obama is committed to developing our nation’s new energy frontier, including the promising area of advanced solar energy,” Secretary Salazar said. “Our Bureau of Land Management, which oversees 23 million acres of Southwestern lands with solar potential, plays an important role in supporting the President’s renewable energy goals. These projects on BLM land in Nevada can significantly reduce the costs and environmental impacts of utility-scale solar power facilities and demonstrate the commercial viability of these facilities. Thanks to Senator Reid’s leadership, Nevada is ready to jump-start these projects, put people to work, and create more clean power.”

“I am very pleased, but not surprised, that Nevada has been chosen as the site for this cutting-edge project,” said Reid. “Nevada stands to be the leader in solar power production and technology development, especially with this kind of positive support from our federal partners. I am working on additional policies in the Senate to enhance Nevada’s economy and create jobs through the production and export of clean renewable energy. The Nevada Test Site can and should be a proving ground for new ideas and for attracting new clean energy industries that will help our state and country compete globally.”

Under the agreement, the federal government is dedicating more than 25 square miles to solar energy research—an area larger than Manhattan. DOE will use the site to demonstrate innovative Concentrating Solar Power (CSP) technologies. CSP systems concentrate the sun’s energy and capture that energy as heat, which then drives an engine or turbine to produce electrical power. The Solar Demonstration Zone will complement BLM’s establishment of 24 Solar Energy Study Areas (SESAs) on public lands across the U.S. Southwest by helping to ensure that the most advanced CSP technologies are ready for commercial deployment. Plans are underway to create a new DOE funding opportunity for demonstration projects at the Nevada Test Site that will include matching investments from the private sector.

DOE selected this site after reviewing 26 possible locations, evaluating factors including solar conditions, suitable terrain, and existing infrastructure to support solar projects. In addition to collaborating with each other, BLM and DOE are working in close coordination with the U.S. Air Force to identify and address potential problems with locating and operating the Solar Demonstration Zone at the Nevada Test Site. DOI and DOE will continue to collaborate with the Air Force and the Department of Defense. The site will serve as a test bed for other solar projects proposed near military installations throughout the desert southwest.

Before selecting the site for the Solar Demonstration Zone, the federal government consulted with relevant stakeholders, including state, tribal, and local governments, as well as local utilities. Under the interagency agreement, DOE and DOI will continue collaborating to effectively implement the project, including working together to conduct environmental reviews, make any land status adjustments, and coordinate necessary infrastructure planning on the site.

See the complete Memorandum of Understanding (PDF 135 KB). Download Adobe Reader.

For more information on the Solar Energy Technologies Program and solar funding opportunities, please visit the Solar Technologies Program Web site.

More information on the BLM’s renewable energy program is available at the Bureau of Land Management’s New Energy for American Web site.