President Obama has approved $1.85bn in loan guarantees for two large scale solar projects as part of the economic stimulus package. Combined these projects are thought to be creating 5000 jobs. Abengoa Solar is to receive $1.45bn in loan Guarantees to help support the development of a new solar farm in Arizona which is expected to power 70,000 homes.

 A further $400 Million in Loan Guarantees will be provided to Abound Solar Manufacturing to develop two new solar manufacturing plants. This is expected to create up to 1500 permanent jobs. It is an interesting move away from the Bush era’s pro oil approach. With the BP crisis in the gulf still in full swing Obama will face far less opposition in pushing these loans through. There will also be much stronger public support for renewable energy generally and drop in support for further off shore drilling programmes.

Obama is looking towards renewable energy as not only an investment in the environment but as a new industry to help rebuild America’s fragile economy. By investing in Solar power production Obama is opening a new income steam to the U.S and is also going to be competing directly with China who currently have huge solar panel production capacity.

 As more countries realise the importance of investing in solar energy and solar panel development we are likely to see increases in efficiency and a decrease in technology costs.

With the huge oil disaster in the Gulf of Mexico still fighting for column inches with the FIFA World Cup in most parts of the world, it still remains a highly emotive subject in the country where it is having the most devastating impact. The Gulf states of the US are reeling under the blow to their economy, environment and way of life with an understandable backlash now both in the media and in Washington towards the oil industry and in particular, BP.

With this public maelstrom directed at the hapless BP, a leading energy attorney, Greg Chaffee has stated that the disaster will inevitably lead to more investments in green energy. Chaffee who practices at Morris Manning & Martin and also acts as the chairman of the MMM Green Industry Practice stated that,

“This is more evidence that the Gulf spill disaster has become a wakeup call for a nation that remains firmly addicted to oil.”

With specific reference to BP, Chaffee added,

“Not only should the federal government hold BP accountable for its errors and misjudgments leading up to the disaster, the federal government is now positioned more than ever to be the catalyst for funding research and development on alternative fuels.”

The Obama administration has already given its commitment to leading the way in green technologies with other leading countries such as China giving backing to funding in renewable energy sources. Chaffee however believes that what is really needed is not government legislation but a root change in the culture of the public.

“If we do not mobilize our resources now to concentrate on our energy future, we will be missing a key opportunity to positively re-shape the economic and environmental future of our nation. Weaning ourselves from our addiction to oil does not begin at the White House. It begins at home.

Each decision we make daily – from the cars we drive, to the containers in which we store our food, to how high we set the thermostat has an impact on our demand for oil. It’s that demand which led us to drill a mile beneath the ocean floor in the Gulf of Mexico.”

The newly established Energy Technology Institute (ETI) has announced that the innovative Nova Project will be one of the first recipients of its research funding. The V-wing turbine design, unorthodox in that it is designed to be supported in the air by two giant vertical wings represents a dramatic step forward in green technology design. The government hopes that the V-wing along with other renewable energy sources will soon be supplying energy in to the UK national grid. Recent energy legislation and the establishment of the ETI highlight the government’s desire to meet its green target of reducing greenhouse gas emissions by 80% by 2050.

ETI, made up of BP, Caterpillar, EDF Energy, E.ON, Rolls-Royce and Shell are thought to have around £1.1 billion to dedicate to similar such projects as the V-wing and will be a key driving force behind renewable investment in the near future alongside the proposed feed-in tariff. The Nova project represents a worldwide move towards greener technology. As Lord Drayson, the Science and Innovation minister stated,

“This is evidence of a real shift to green jobs and green engineering”.

Other funding will go towards researching floating offshore wind and tidal turbines around the UK and will contribute greatly to the success of the renewable technology industry in the next twenty years.