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Abengoa Solar gets $1.45 billion for Arizona plant

By | July 6, 2010, 4:00 AM PDT

Over Independence Day weekend, President Obama announced a $1.45 billion conditional commitment to Spanish company Abengoa Solar Inc.

The loan guarantee is to construct Solana, a 250-megawatt, concentrated solar power (CSP) facility, to be located near Gila Bend, Arizona. Using about 900,000 mirrors and covering 1,900 acres, the facility might end up being the largest CSP plant in the world.

The solar-thermal facility will collect sunlight in “troughs,”  strategically arranged mirrors that direct sunlight to heat water within tubes to 700 degrees Fahrenheit. Steam then powers large turbines. To run at the highest efficiency, these systems need to collect a lot of heat. The plants are usually very large and in areas with almost constant sunny days, like Arizona (or Abu Dhabi, where the company is also helping to build a 100-MW CSP plant, announced last month).

President Obama during his weekly address:

After years of watching companies build things and create jobs overseas, it’s good news that we’ve attracted a company to our shores to build a plant and create jobs right here in America.

An estimated 1,600 construction jobs will result from the project, with around 80 longer termed positions at the facility. According to the statement, more than 70 percent of the plant’s materials will be U.S.-made. When finished, Abengoa expects Solana to generate enough electricity to power about 70,000 homes and lessen CO2 emissions by approximately 475,000 tons.

Solana’s six-hour thermal energy storage will allow it to send electricity to Arizona Public Service Company after the sun sets.

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Melissa Mahony

About Melissa Mahony

Melissa Mahony was a contributing editor for SmartPlanet from 2010 to 2011.

Melissa Mahony

Melissa Mahony

Contributing Editor, Energy

Melissa Mahony has written for Scientific American Mind, Audubon Magazine, Plenty Magazine and LiveScience. Formerly, she was an editor at Wildlife Conservation magazine. She holds degrees from Boston College and New York University's Science, Health, and Environmental Reporting Program. She is based in New York.

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Melissa Mahony

Melissa Mahony

Melissa does not have financial holdings that would influence how or what she covers. She currently works for the Wildlife Conservation Society as an editor. Should Melissa cover a topic in which the WCS is involved, she will disclose this fact in her writing.

She writes for SmartPlanet and is not an employee of CBS.

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RE: Abengoa Solar gets $1.45 billion for Arizona plant
This is a breakthrough project for the US. It is also going to further the development of CSP for use in massive initiatives like Desertec. (http://www.dii-eumena.com/)

The President also announced a loan guarantee for Abound Solar to underwrite two PV factories, in Colorado and Indiana, with a combined output of 840 MW annually. (http://climatechange.foreignpolicyblogs.com/2010/07/03/2-billion-for-solar/)
Posted by Bill Hewitt
6th Jul 2010
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
More outsourcing? Surely there was some company here qualified to take on the job...
Posted by jcfoulstone@...
6th Jul 2010
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
Great article ! CSP will be the salvation of America, providing
both jobs and clean energy.

One point: you wrote "direct sunlight to heat water within tubes
to 700 degrees Fahrenheit".

Well. Not quite. The sunlight heats a carrier fluid like oil or
molten salt, preferably.

The carrier fluid is what goes through the evacuated tubes.
Then that fluid goes through a heat exchanger to boil water.

Molten salt can hold heat for a solid week. Oil storage is more
on a matter of hours depending on the size of the reservoir.

There's a Spanish installation that uses hot air as the carrier fluid.
The downside is there's no real heat storage that way.
Posted by Jkirk3279
6th Jul 2010
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
I'm so glad to see the president taking large strides toward real
change in our domestic energy policy. It is becoming more and
more practical everyday to use solar energy. It seem like daily
I'm reading about a new technological breakthrough in solar
power technology. One of my recent favorites is about a solar
cell that the military has developed that is not only cheap and
flexible but 10,000 times more efficient. This is the kind of
progressive thinking we need more of in the world today. I'll post
a link to the video about the technology if you would like to learn
more.
Posted by sanud002
6th Jul 2010
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
I take that back, I think his environmental policies are stupid, since most of them will be repealed and struck down by the next republican admin. The result is a quick upsurge/start-up of new renewable and clean energy companies/initiatives, sustained by new sources of Obamafunding. . ..Unfortunately, funding and subsidies for these initiative and programs will dry up during the next administration, resulting in a second wave of failed companies/investments/jobs/etc. Obama seems to be creating his own/and planting the seeds for another wave of economic downfall and energy/technological mishap.
Posted by CaptnPlanet
6th Jul 2010
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
This is awesome! It doesn't matter that it is a foreign company, it will
be hiring Americans and Americans will benefit form the solar power.
Who cares where the company's stockholders live.
Posted by randoran
6th Jul 2010
0 Votes
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RE: Abengoa Solar gets $1.45 billion for Arizona plant
I wonder how much this administration could have "granted" Abengoa if it had not already given 2 billion dollars to a foreign company?? Why did this "regime" give that money to the "state-owned" oil company to develop THEIR newly discovered off-shore oil field?
Posted by JTF243@...
6th Jul 2010
0 Votes
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There are several US companies capable
of building this facility and that should have been a primary consideration in the decision. More than about the money, we need to bolster the knowledge-base for alternative energy solutions. With this program, once the facility is completed, all the knowledge of how to build it, how to overcome the challenges of construction and operation will leave our shores to go benefit someone else. While I applaud the new attention to solar, I am confused by the decision to go with a non-US contractor,.
Posted by scdivemaster@...
9th Jul 2010
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