LCM has been working with the Loan Programs Office of the U.S. Department of Energy (“DOE”) for over eighteen months to complete due diligence and establish terms of a loan to help finance the project.

The DOE announced its conditional commitment for $2 billion of long-term debt financing for the project in December of 2016.  The remainder of the project will be financing with equity financing.

The DOE Loan Programs Office's mission is to accelerate the deployment of innovative clean energy projects and advanced technology vehicle manufacturing facilities across the United States, advancing an all-of-the-above energy strategy that avoids, reduces, or sequesters greenhouse gases.  DOE has established an $8.5 billion federal loan guarantee program for certain advanced fossil-fuel projects.  The LCM project is the first fossil project to reach the conditional commitment stage.

 

This conditional commitment represents a major milestone in the Department’s efforts to scale up carbon capture utilization and sequestration and continue American leadership in advanced fossil energy technologies.
— U.S. Secretary of Energy Ernest Moniz