World Energy announced it has been invited by the US Department of Energy (DOE) to submit the Part II Application for an approximately $2bn loan guarantee through the Title 17 Clean Energy Financing Program.

Established in 2005, the Title 17 program aims to accelerate the development and deployment of large-scale clean energy projects that significantly reduce greenhouse gas emissions.

If awarded, the loan guarantee would provide critical funding for World Energy’s Houston facility.

This facility would focus on producing both SAF and clean hydrogen, targeting two of the most challenging sectors to decarbonise: aviation and heavy-duty trucking.

“As a first mover in the SAF production and decarbonisation markets, World Energy is committed to displacing fossil jet fuel with SAF as quickly and efficiently as possible. We applaud the leadership shown by the Biden-Harris administration and the Department of Energy to collaborate with private industry to meet this critical need,” Gene Gebolys, founder and CEO, World Energy.

The Houston facility is expected to produce over 250m gallons of SAF annually. This substantial increase in SAF production would be a major step forward in decarbonising the aviation industry. Compared to traditional jet fuel, SAF offers a lifecycle greenhouse gas reduction of more than 80%.

The company aims to reach a production capacity of 1bn gallons of SAF per year by 2030 across multiple facilities.

This aligns with the Biden administration’s SAF Grand Challenge, which sets a national goal of US producers supplying 3bn gallons of SAF annually by 2030.

It’s important to note that submitting a Part II application doesn’t guarantee final approval for the loan guarantee.

The DOE will thoroughly evaluate the application before inviting World Energy to proceed with due diligence and term sheet negotiations. However, this invitation highlights World Energy’s leadership in clean energy solutions and their commitment to achieving net-zero emissions.