Money More Money $2 Billion from USA for Solar

AN FRANCISCO (MarketWatch) -- U.S. President Barack Obama on Saturday outlined plans to ramp up the number of clean-energy jobs in the U.S., with his administration's goal fueled in part by roughly $2 billion in new conditional commitments to two solar companies.

Abengoa SA (ES:ABG 16.52, +0.32, +1.94%) was offered a $1.45 billion loan guarantee by the U.S. Department of Energy to build a 250-megawatt solar plant in Arizona, and Abound Solar Manufacturing was offered a $400 million loan guarantee toward two plants where thin-solar panels will be manufactured.

The guarantees through the Recovery Act and other measures are expected by the awardees to create more than 5,000 jobs, according to a statement from the White House.Obama during his weekly address said the investments will help the country establish leadership in "cutting-edge" solar technology, and create jobs to aid economic recovery efforts.

A transition to a clean-energy economy and doubling use of renewable-energy sources including wind and solar power "have the potential to create whole new industries and hundreds of thousands of new jobs in America," said Obama in the address.

Obama, in announcing the new energy-related commitments, also took aim at Republicans, saying they are holding up the extension of unemployment insurance for workers without jobs, "a move that only ends up holding back our recovery. It doesn't make sense."

Meanwhile, Georgia Sen. Saxby Chambliss in the GOP's weekly address Saturday said national debt is "one of the most dangerous threats" facing the country as it celebrates another Independence Day.

"At a time when Americans are clipping coupons and pinching pennies, President Obama and the Democrats in Congress continue to spend money that they, we, do not have," said Chambliss, adding that the national debt recently topped $13 trillion.

Energy projects outlined

Abengoa Solar Inc., a subsidiary of Spanish renewable energy and engineering firm Abengoa SA, has agreed to build a solar generation plan near Gila Bend, Ariz. The Solona project will create 1,600 jobs in Arizona and about 85 permanent jobs once the plant is operational, according to Abengoa Solar.

The company said, according to the White House statement, that 70% of the components and products used in the construction will be made in the U.S., and the plant will generate enough to power for more than 70,000 homes at full capacity.

Abound Solar Manufacturing plans to use the loan proceeds to expand its Longmont, Colo. plant. A portion of the proceeds will be used to open a new plant in an empty Chrysler supplier factory in Tipton, Ind.

Abound Solar estimates construction of the plants will 2,000 jobs, with 1,500 permanent manufacturing and technical jobs.