EXIM Bank Approves More Than $900M for Solar Energy Project

THE PROJECT: EXIM’s Largest Renewable Energy Transaction to date, Supports Biden Administration’s Partnership for Global Infrastructure and Investment (PGII)

WASHINGTON – June 1, 2023 - The Board of Directors of the Export-Import Bank of the United States (EXIM) today approved a direct loan for more than $900 million to the Ministry of Energy and Water of the Republic of Angola to support the construction of two photovoltaic solar energy power plants in the country. The project will generate over 500 megawatts of renewable power; provide access to clean energy resources across Angola; help Angola meet its climate commitments; and support exports of U.S. solar panels, connectors, switches, sensors, and other equipment. The transaction is estimated to support 1,600 jobs.

“We are proud to take part in this important project, which will increase access to electricity in Angolan communities using clean energy technology,” said EXIM President and Chair Reta Jo Lewis. “This transaction not only aligns with President Biden’s PGII initiative, but also advances EXIM’s efforts to promote clean energy exports, strengthen the U.S.-Africa commercial relationship and support U.S. exporters and American workers facing foreign competition.”

The project -- initially announced during the 2022 G7 Summit by the Government of Angola, U.S. firm AfricaGlobal Schaffer, and U.S. project developer Sun Africa -- advances President Biden’s flagship Partnership for Global Infrastructure and Investment (PGII), which aims to advance digital and energy infrastructure worldwide. The transaction also falls under EXIM’s China and Transformational Exports Program (CTEP), a congressionally mandated program to support U.S. exporters facing foreign competition from China. 

EXIM’s Board of Directors also approved two additional transactions for congressional notification during today’s meeting, including more than $200 million in financing for SunExpress Airlines and two Financial Institution Buyer Credit policies totaling $400 million to Citibank International Plc and Credit Agricole CIB for a short-term credit facility for Trafigura Pte.

SOURCE:  Export-Import Bank of the United States Approves More Than $900M for Solar Energy Project in Angola | EXIM.GOV 

WARSAW – April 17, 2023 - Today, the Export-Import Bank of the United States (EXIM) signed a letter of interest issued to ORLEN Synthos Green Energy (OSGE) for up to $3 billion in financing for a potential project in Poland to deploy BWRX-300 small modular nuclear reactors designed by GE Hitachi Nuclear Energy. During the signing ceremony, EXIM was joined by U.S. Ambassador to Poland Mark Brzezinski, representatives from the U.S. International Development Finance Corporation (DFC), OSGE, GE Hitachi Nuclear Energy, and a delegation from the U.S. House of Representatives. Letters of interest are nonbinding statements that indicate that EXIM is open for business in the market identified and is willing to consider financing for a given export transaction should an application be submitted.  

“Investing in energy solutions of the future and ensuring that clean energy innovations are American-made are among our agency’s top priorities,” said Export-Import Bank of the United States President and Chair Reta Jo Lewis. “We recognize the strategic importance of this project and are eager to receive ORLEN Synthos Green Energy’s application in order to begin due diligence on this potential opportunity.” 

“I welcome ORLEN Synthos Green Energy partnering with GE-Hitachi for the deployment of Small Modular Reactors,” said U.S. Ambassador to Poland Mark Brzezinski. “The United States is helping advance this vital project. That is why today we are announcing a plan to provide significant project financing from the U.S. Development Finance Cooperation (DFC) and the Export-Import Bank (EXIM) of the United States. This is another demonstration of the United States’ strong commitment to bolstering Poland’s energy security.” 

“We applaud the U.S. government’s consideration of financing for the deployment of BWRX-300 small modular reactors in Poland,” said Jay Wileman, President & CEO, GE Hitachi Nuclear Energy. “The BWRX-300 is the ideal technology to help Poland meet its climate and energy security goals.”  

Last Thursday, EXIM also authorized a loan to OSGE for pre-project engineering services associated with potential deployment of a GE-Hitachi BWRX-300 small modular nuclear reactor in Poland. The loan will be structured as an Engineering Multiplier Program facility, which will support the pre-project development phase engineering assessments and studies including cost and construction estimates of the proposed project.  

SOURCE:  Export-Import Bank of the United States Issues a $3B Letter of Interest for U.S. Nuclear Exports to Poland | EXIM.GOV 

Land is scarce in many parts of our fast-urbanizing world.  Few communities have the chance to create something brand-new on a significant piece of land—and even fewer can develop that land in a way that confronts climate change, generates jobs, and attracts investment.

But that opportunity is now presenting itself in Bosnia, Greece, Poland, Serbia and soon in the very large coal-producing and consuming economies in South and East Asia. In those regions, the transition away from coal offers the prospect of repurposing post-mining land—fueling both economic opportunities and clean energy. Research shows that post-mining lands play a key role in the shift to renewables: “There is enough space in post-mining lands to generate as much electricity with solar as all the coal and lignite power currently produced in the EU,” as one report concluded.

To help post-coal communities navigate a path to jobs and investment while also mitigating climate change, a World Bank team built LURA—the Land Use Repurposing Application. LURA is a free, web-based, open-source tool that assesses coal lands’ suitability for a mix of sustainable and productive post-coal projects.  It has already been used successfully in the three years since its introduction.  In Greece, for example, the government is moving forward with most of LURA’s recommendations for repurposing the Kozani Lignite area.  Solar PV installation on a massive scale will begin soon, and a plan that includes new business and industrial areas is also in the works.

A transformative tech tool

LURA relies on collaborative input from mine operators and workers, technical specialists, municipal authorities, and the community as a whole to examine a site based on five criteria: location; geotechnical risks and legacies; topographical and hydrological conditions; environmental conditions and risks; and development opportunities.

Since coal mines are often the primary economic driver in their region, the question of jobs is an equally important input.  The details of a potential labor transition for miners, as well as for workers in indirect jobs and related sectors, also drives LURA’s analysis.  

Once stakeholders’ input has been added, LURA produces a map of the area, depicting zones where specific repurposing options would be most likely to succeed, given the conditions and the community’s needs.  The app then assigns a post-mining repurposing scenario that may include forests, agriculture, natural habitats or energy crops, as well as renewable energy generation and storage, hydrogen-infrastructure, and business parks for low-carbon industries.

Nothing like LURA has ever existed before, and it fulfills a critical need—for the climate as well as the local community. In the two decades I’ve worked in the field of mine closure, I’ve seen this need first-hand. Until recently, many mines were closed with a minimum of effort, with bare-bones environmental and safety measures and little thought to economic revitalization or the well-being of nearby residents. As a result, numerous post-coal communities have been deprived of economic benefits to which they could have laid claim.

Building the “Just Transition” toolbox

The repurposing of former mining lands and assets is part of the World Bank’s approach to the Just Transition, a process that puts people and communities at the center of the transition to clean energy.   The World Bank uses a wide variety of diagnostic and advisory tools to support governments preparing to transition away from coal; other steps include creating effective governance structures for coordinating across ministries, addressing regulatory impediments, and designing effective policies to help re-train workers, as explained here.

Since many coal-producing countries lack the resources needed to remediate impacted lands and capitalize on the economic opportunities a transition away from coal makes possible, LURA is key to supporting Just Transition efforts.   So far, the results have been eye-opening for many in-country stakeholders who use the app, because post-mining lands are often seen as a liability. Instead, LURA shows with great specificity how the land can generate economic benefits—for example, by hosting industrial parks that help diversify the region’s business potential. Once mayors and municipalities can make the argument that land has value, they can use it as collateral to raise investment.  

During the three years since LURA was introduced, one result in particular has surprised us: How the app builds consensus. While repurposing land associated with the Amyntaio Mine in Greece, for example, we saw that giving communities, municipalities, workers, and other stakeholders the opportunity to participate in and benefit from a post-coal economy creates a sense of shared ownership in the outcome.  

Stakeholders’ engagement is significant because repurposing land takes time, investment, and labor.  It requires a stable, durable commitment among many players working in partnership, and this is important because the process of repurposing former coal land can be freighted with emotion. LURA takes the emotion out of it, creating a space for fact-based conversations about a region’s future.

Once LURA maps and proposes new uses for a coal site, there’s still miles to go—because converting coal-based land is a long-term process that varies in every region of the world. What works in Greece or Bosnia or Poland won’t necessarily work in India; plans that suit one state in India may not apply in a neighboring state. Every single transition from coal is different.

But one thing is true in every case: By offering communities a tool that analyzes facts on the ground, values collaborative input, and offers a path toward a cleaner energy, LURA can help regions transition from coal dependence to a post-coal future.

Author:

Wolfhart Pohl

Lead Environment and Geosciences Specialist - WORLD BANK

• Steelmaking and cement production are both highly carbon intensive, and reaching net-zero will require the industries to address technical limitations.
• The use of electric arc furnaces and renewably produced hydrogen are already reducing energy and resource consumption.
• There is also progress towards fully recyclable steel, including technology that uses carbon from old rubber tires, removing the need for coke and coal.
• Government commitments to green public procurement are now needed, as the immense purchasing power of public bodies would kick-start the market for low-emissions steel and concrete.

 Steel and cement are an integral part of the modern world. Steel is found in everything, from major infrastructure to kitchenware, while cement, as the principal ingredient in concrete, is the most widely consumed resource in the world after water. Approximately 3 metric tonnes of cement are used annually for every person in the world. Steelmaking and cement production are both highly emission intensive. The need for continuous high-temperature heat to produce steel, cement and concrete requires huge amounts of energy, much of which is still dependent on fossil fuels. Moreover, the chemical processes involved in producing these materials are themselves a major source of emissions. By most estimates, steel and cement production account for just over 50 percent of all industrial emissions.

Nearly 2 billion tonnes of steel are produced every year, generating around 8 per cent of all global CO2 emissions. For each tonne of steel produced in conventional furnaces, between 1.5 tonnes and 3 tonnes of CO2 are released into the atmosphere. Cement accounts for a further 6 per cent of total emissions, with two-thirds related to the chemical reactions involved in production, and the remaining one-third resulting from fuel combustion. 

Moreover, demand for cement and concrete is set to increase by more than one-third by 2050, when the global population is expected to reach 9.7 billion, 70 per cent of which will be living in cities. To accommodate this massive urban expansion, an equivalent of another New York City will be built every month for the next 40 years. Even technologies that are driving the energy transition, such as wind turbines, require large amounts of steel and concrete. It is therefore imperative for the mining and manufacturing industries—and especially steel and concrete—to bring their process technologies in line with climate commitments. To achieve this, process emissions in the steel industry must fall by at least 30 per cent by 2030. Reaching net-zero emissions from cement by 2050 will require the industry to address technical limitations and establish the use of carbon capture and storage (CCS) technologies. 

WORLD ECONOMIC FORUM