Department of Energy guarantees loans
The U.S. Department of Energy is finalizing substantial financing for two publicly-traded companies and for a host of utilities just days before President-elect Donald Trump returns to the White House.
Rivian Automotive (Nasdaq: RIVN) has secured a $6.6 billion loan to construct a new manufacturing facility in Georgia. This plant aims to produce up to 400,000 electric vehicles a year including the upcoming R2 and R3 models and to generate about 7,500 jobs.
Plug Power Inc. (Nasdaq: PLUG), a New-York based hydrogen manufacturer is receiving a loan guarantee of $1.66 billion to support the construction of up to six hydrogen plants, the first one being its Graham, Texas, green hydrogen plant.
DTE Electric Co. will receive $7.17 billion to finance renewable energy generation and battery storage installations in Michigan. DTE Gas Co. will receive $1.64 billion to modernize natural gas infrastructure by replacing legacy pipelines and moving meters outdoors. Consumers Energy has been conditionally approved for $5.23 billion to upgrade its energy infrastructure and to replace 1,700 miles of aging natural gas pipelines in Michigan. PacifiCorp will receive $3.52 billion to construct 700 miles of high-voltage transmission lines across Idaho, Oregon, and Utah.
The incoming Trump Administration is expected to eliminate these types of loan guarantees and financial incentives.
Rivian Automotive stock rose to close at $14.44 a share. Plug Power stock edged up slightly to close at $2.74 a share.
