Coal Gasification News wrote an opinion article that coal gasification loan guarantees are needed in the United States. This week the DOE announced a program to provide $8 billion in loan guarantees for coal gasification projects and coal power projects that have CO2 carbon capture and sequestration. The program is funded throught the authority of the Energy Act of 2005 signed by President Bush.

The program is on a fast schedule:
DOE Solicitation issue – September 22, 2008
Part I Application due – December 22, 2008
Part II Application due – March 23, 2009

The application fee is $800,000.00. The first payment is due with the Part I application on December 22, 2008 and is $200,000. The second payment is due with Part II application on March 23, 2009 and is $600,000.

An application will be evaluated based on three factors:
1. Creditworthiness of the project – 50%
2. Program factors
Construction factors – 15%
Legal and regulatory factors – 10%
3. Technical review
Technical merit – 5%
Technical approach – 10%
Environmental benefits – 10%
TOTAL 100%