USA: The US Department of Energy (DOE) has announced the Loan Programs Office (LPO) has terminated its conditional commitment for the Grain Belt Express Phase 1 project, a high-voltage direct current (HVDC) transmission line intended to connect wind and solar capacity across Kansas and Missouri. The conditional commitment would have provided a loan guarantee of up to $4.9 billion.
After a review of the project’s financials, DOE stated that it found that the conditions necessary to issue the guarantee are unlikely to be met and it is not critical for the federal government to support the line. DOE is conducting a review of every applicant and borrower, including the $100 billion in closed loans and conditional commitments made between Election Day 2024 to Inauguration Day 2025.
The Grain Belt Express line, meant to provide 5 GW of energy delivery capacity, was to go through Kansas, Missouri, Illinois and Indiana. The line secured the last of its approvals in October 2023, when the Missouri Public Service Commission (MPSC) approved its request to amend its existing Certificate of Convenience and Necessity.
The line is the largest transmission infrastructure project in US history. It was going to deliver $52 billion in energy cost savings for American consumers, grid reliability for regions serving 25% of defense infrastructure facilities and 40% of households, 5500 jobs, $11 billion investment in American-energy infrastructure, domestic manufacturing renaissance and 5 GW American-made energy sources.
Source: T&D World
