Washington – Spain's Abengoa received a $1.2 billion loan guarantee from the U.S. government for a solar power project in California, the company said.
The Department of Energy announced its offer of the loan guarantee on Tuesday, Abengoa, which specializes in technology solutions for sustainable development in the energy and environment sectors, said in a statement.
The conditional commitment for the loan guarantee will support construction and start-up of the Mojave Solar Project, which will use advanced solar technology to increase efficiency and reduce power generation costs.
The 280 gross MW solar power plant will be located some 150 kilometers (93 miles) northeast of Los Angeles and produce enough energy to serve 53,000 households.
MSP, which will sell its production to Pacific Gas and Electric, will prevent 350,000 metric tons of carbon dioxide from being emitted into the atmosphere annually, Abengoa said.
Construction and operation of Mojave will represent a total investment of approximately $1.6 billion, the company said.
More than 1,000 new jobs will be created in the construction phase, as well as another 70 positions for the permanent operation and maintenance of MSP, Abengoa said, adding that the plant also will generate many indirect jobs associated with the manufacture of components throughout the supply chain.
The Spanish company plans to start construction of MSP in August and expects the plant to begin producing energy in the summer of 2014.
Abengoa, which is currently building 930 MW of solar plants worldwide and has an additional 193 MW in operation, already is constructing a 280 MW solar plant in Arizona.