Renewable Energy and Environment

World demand for renewable-energy and other environmentally beneficial goods and services is rapidly rising. For example, the global market for renewable-energy materials and equipment is projected to rise to $31.8 billion in 2015. (Source: BBC Research)

U.S. companies are global leaders in renewable-energy and environmental technologies. Ex-Im Bank is playing an increasing role in supporting their exports to foreign markets.

Ex-Im Bank Renewable-Energy Support

In FY2011, Ex-Im Bank

• Authorized a record $889 million to support over $1.3 billion of U.S. exports of environmentally beneficial goods and services. More than 81 percent of those authorizations supported exports related to renewable-energy production.

• More than doubled its authorizations for renewable-energy exports to $721 million from $332 million in FY2010. This represents a 117 percent increase in renewable-energy support over the amount authorized in FY 2010 and an increase of 614 percent over the amount authorized in FY 2009.

• Became the first international financing institution to finance a solar-power project under the Indian government’s Jawaharlal National Solar Mission to develop 20,000 megawatts of solar power by 2022.

• Approved nearly $180 million for seven solar-energy projects in India, supporting U.S. exporters in the solar photovoltaic (PV) industry across the United States. (See accompanying text.)

• Authorized two transactions totaling $430 million to support exports by First Solar Inc. to solar-energy projects in Canada. In both transactions, Ex-Im Bank is guaranteeing loans denominated in Canadian dollars made with the proceeds of two Canadian market bond issuances with repayment terms of 18 years. Ex-Im’s financing for First Solar exports to Canada and India in FY 2011 is supporting an estimated 550 jobs at the company’s manufacturing facility in Perrysburg, Ohio.

• In addition, the Bank authorized approximately $3 million in transactions supporting end-use energy efficiency exports such as insulation and thermal windows.

Renewable Express

Smaller renewable-energy projects traditionally have been at a disadvantage in obtaining project financing because of the typical high cost. In FY 2011, Ex-Im Bank expanded and renamed its former Solar Express product to help more companies in U.S. solar, wind and other renewable-energy industries to be more competitive and increase their exports.

Renewable Express offers a streamlined and lower-cost approach to smaller projects seeking loans of $3 million to $10 million.

Ex-Im Supports U.S. Solar Industry Exports to India

Photo courtesy of First Solar Inc.

In FY 2011, Ex-Im Bank was one of the largest financiers of renewable-energy projects in India and authorized nearly $180 million in financing for seven solar transactions in the country. India has an increased demand for solar power due in part to the country’s National Solar Initiative.

The Bank's support for these projects was critical, due to the general lack of available long-term financing at commercially feasible terms.

Ex-Im Bank financing for these projects included an $84.3 million direct loan to Dahanu Solar Power Pvt. Ltd. This financing will support the purchase of thin-film solar panels from First Solar Inc. in Tempe, Ariz., which has its manufacturing facility in Perrysburg, Ohio. The solar panels will be used for the construction of a 40-MW photovoltaic (PV) solar-power plant in Rajasthan, India. 

In another transaction, the Bank approved an $18.9 million direct loan to Tatith Energies of Gujarat, India. This loan will support the purchase of construction services from American Capital Energy and solar panels from SolarWorld California. The U.S. exports will be used in the construction of a five MW solar PV crystalline power project in Gujarat, India.

Ex-Im’s financing for these solar-energy exports to India and another large sale by First Solar to projects in Canada are supporting more than 500 jobs in the U.S. solar industry.

Supporting U.S. Exports of Wind Turbines

Photo courtesy of Northern Power Systems Inc.

Northern Power Systems Inc., a manufacturer of wind turbines based in Barre, Vermont, is using Renewable Express financing from Ex-Im Bank to export 55 100-kilowatt (kWh) distributed wind turbines for community wind projects in Italy.

The wind towers will be owned by the borrowers – ARG Energie S.R.L., Eoland S.R.L. and PurEnergy Land S.R.L. – special-purpose corporations that will sell all of the electricity produced to Gestore dei Servizi Electtrici S.p.A. (GSE). GSE is a public company wholly owned by the Ministry of Finance and Economy that administers Italy's renewable-energy programs.

The three separate authorizations were processed under Ex-Im’s Renewable Express, which provides streamlined limited-recourse project financing to small renewable-power producers that meet the Bank's credit standards. Ex-Im Bank is guaranteeing a total of $22.2 million in euro-denominated loans from RB International (USA) LLC of New York to facilitate the purchase of 55 Northern Power™ 100-kWh permanent-magnet direct-drive wind turbines by PurEnergy, a wind-energy developer based in Bisaccia, Italy.

More than 15 jobs are being directly supported by these transactions at the 140-employee company. Northern Power anticipates the sale will also generate 30 to 45 additional jobs in its supply chain.

"The combination of Northern Power's world-class turbine performance with Ex-Im Bank-backed financing offers international customers the potential for very attractive project returns. We look forward to continuing our partnership with Ex-Im Bank to grow our business and expand green jobs at our company and throughout our supply chain," said Northern Power Systems CEO John P. Danner.