The U.S. Export-Import Bank said that it anticipates investing $200 million in fiscal year 2014 to support renewable energy projects—like wind and solar industry projects—using U.S. companies’ products overseas. The news comes a day after the bank announced that it authorized roughly $20.5 billion in financing in 2014, supporting 164,000 U.S. jobs.
"Ex-Im is proud to serve as a backstop, filling in gaps in the private sector and ensuring that the American export economy remains vibrant in a world of market ebbs and flows," said Chairman Fred Hochberg. "This year's numbers are reflective of a strong economic recovery and of Ex-Im Bank's continued record of supporting quality American jobs while generating a surplus for the American taxpayer."
The Ex-Im Bank supports U.S. companies by helping them finance projects, like some solar power plants in India or Africa, overseas. Other companies it helps them finance imports of goods into the country with lower financing rates than they might be able find through other financiers.
Thanks to a congressional mandate to support environmentally beneficial U.S. exports the bank also has been a strong supporter of renewable energy since at least 2009. It said that since then it has invested nearly $2 billion in renewable energy since then. Domestically the support helps increase jobs in the renewables and environmentally friendly industries.
“American businesses have the innovation, technologies, and skilled workers needed to seize the unprecedented opportunities emerging in the global renewable energy sector,” Hochberg said. “Our goal at Ex-Im is to fill the gap when private lenders can’t offer support, so that U.S. companies can compete on a level playing field in this growing market.”
The $200 million in funding helped the companies leverage further investments from other investors, oftentimes at longer terms with lower interest rates. The Ex-Im Bank said its support allowed U.S.-based companies to ship approximately renewable energy exports worth $550 million. The technologies shipped included wind, solar, hydropower, and geothermal projects.Tweet