Grain Belt Express Project Faces Setback as Federal Loan Guarantee is Canceled
The ambitious Grain Belt Express transmission line, designed to carry renewable energy from the Midwest to the eastern United States, has hit a significant hurdle. The U.S. Department of Energy has withdrawn a $4.9 billion federal loan guarantee, citing that government involvement is unnecessary for the project’s initial phase.
Despite the setback, the Chicago-based company Invenergy remains committed to moving forward with the $11 billion project. The Department of Energy’s decision reflects skepticism about the project’s ability to meet necessary financial conditions. The move follows criticism from President Donald Trump, who has questioned the reliability of wind and solar energy and opposed the transition from fossil fuels.
In Missouri, opposition to the project has been vocal, with U.S. Sen. Josh Hawley and state Attorney General Andrew Bailey leading the charge. They argue that the project threatens farmland and property rights. Hawley claimed to have secured a commitment from U.S. Energy Secretary Chris Wright to cancel the loan guarantee, stating: “To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment.”
Invenergy, however, describes the Grain Belt Express as “America’s largest power pipeline,” which promises to create thousands of jobs and deliver significant energy cost savings over the years. The project aims to transport electricity from western Kansas over 800 miles to Indiana, with the capacity to deliver up to 5,000 megawatts.
The project’s cancellation has sparked criticism from renewable energy advocates. Bob Keefe, executive director of E2, commented, “When electricity demand and consumer power bills are soaring, it’s hard to imagine a more backward move.” Meanwhile, Laurie Williams from the Sierra Club highlighted concerns about increasing power bills and grid reliability.
While the federal loan guarantee would have eased borrowing costs, Invenergy insists the project can proceed with private funding. The company faces ongoing legal challenges from landowners and opposition groups who claim the project is an “elitist land grab.” Missouri Farm Bureau’s president expressed concerns about the impact on rural communities through social media.
Jigar Shah, who led the Department of Energy’s loan guarantee office under the Biden administration, criticized the decision as illegal, stating that the department is obligated to honor commitments if applicants meet the requirements.
Despite the cancellation, Bailey acknowledged that the project might still progress with private investment, although he vowed continued resistance against any attempt to force the project on unwilling landowners.
Original Story at www2.ljworld.com