DOE offers $1.2bn loan guarantee for 250 MW solar thermal plant in California

The US Department of Energy (DOE) has offered a conditional loan guarantee of $1.2bn to support the construction and start-up of the Mojave concentrated solar energy project in California, US.

Located about 100 miles northeast of Los Angeles, the 250 MW concentrating solar power plant is sponsored by Abengoa Solar.

The company plans to begin construction of the Concentrating Solar Power in August this year and the plant is expected to start producing power in 2014. The electricity generated by the facility will be sold to Pacific Gas & Electric under a 25-year PPA contract.

The concentrated solar energy project is expected to produce enough energy to serve about 53,000 households and avoid 350,000 metric tons of carbon dioxide emissions annually.