The Future of Clean Tech Under Trump — Ep198: Jigar Shah
Feb 26, 2025
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Jigar Shah, former Director of the U.S. Department of Energy's Loan Programs Office, discusses the role of government in advancing clean tech. He highlights his efforts in committing over $100 billion in clean energy loans and addresses the challenges posed by the Trump administration. The conversation includes insights on advanced nuclear energy, clean hydrogen, and the competitive landscape between the U.S. and China. Shah emphasizes the need for trust between public and private sectors and the importance of entrepreneurship in driving innovation forward.
Jigar Shah transformed the U.S. Department of Energy's Loan Programs Office, significantly increasing financial support for innovative clean energy projects.
The podcast emphasizes the importance of bridging the gap between clean energy innovation and its large-scale commercialization amidst political challenges.
Shah advocates for modernizing financing approaches to meet the unique needs of clean technology enterprises, ensuring broader project accessibility and growth.
Deep dives
The Increasing Demand for Electricity
The U.S. economy is experiencing a significant surge in electricity consumption due to various factors, including the growth of clean energy technologies. The urgent need for more electricity suggests that the nation will require robust clean energy solutions to sustain its economic expansion. While some experts focus on further advancements in clean energy research, the podcast emphasizes that the real challenge lies in the commercialization and large-scale deployment of existing technologies rather than lab breakthroughs. Ultimately, overcoming the cultural divide and political hurdles surrounding clean energy will be vital for meeting this growing demand.
The Role of the Loan Programs Office
Jigar Shah, during his tenure at the U.S. Department of Energy's Loan Programs Office, transformed the office into a significant player in financing clean energy projects. He sought to bridge the gap between innovative energy technologies and their commercialization in the marketplace. By addressing the limitations of previous financing frameworks, he advocated for more flexible requirements that would accommodate a wider array of clean energy projects beyond traditional power purchase agreements. This strategic shift led to a substantial increase in loans committed during his time, aiding the growth of clean technology sectors.
Understanding the Financial Support Landscape
The podcast discusses the complexities surrounding capital requirements for scaling clean energy projects, highlighting the differences between various financing types. Shah elaborates on the need for non-dilutive financing, which allows companies to access capital without sacrificing ownership stakes. He mentions the importance of adapting traditional lending approaches to better fit the unique needs of clean technology enterprises, recognizing that many do not require conventional long-term contracts to attract investment. By modernizing the Loan Programs Office's approach, significant resources can be allocated to sectors that have previously been overlooked.
Insights from Sectoral Liftoff Reports
Shah shares insights from the liftoff reports developed during his time at the Loan Programs Office, which assess different clean energy sectors and their potential for growth. Each report identifies the unique challenges and opportunities within sectors such as clean hydrogen, carbon management, and geothermal energy. By analyzing market dynamics and expected profitability, these reports provide a roadmap for companies interested in accessing government funds while navigating the complex regulatory environment. While some sectors show great promise, others face significant hurdles that need to be addressed to achieve commercial viability.
Navigating Political and Economic Challenges
The podcast underscores the significant political and economic challenges that the clean energy sector faces in the U.S., especially under changing administrations. Shah points out that the need for a cohesive industrial strategy is crucial for maintaining leadership in clean energy technology and avoiding the pitfalls of outsourcing innovation. He emphasizes that ongoing government support is essential to attract and retain innovators and investors in clean energy, ensuring that the U.S. does not lose its competitive edge to countries like China. Ultimately, realizing a sustainable energy future will depend on proactive governance that encourages technological advancements and market growth.
How can the U.S. government bridge the gap between clean energy innovation and large-scale deployment? Will the Trump administration accelerate progress or put up roadblocks for clean tech? And how can the U.S. stay competitive with China, which already holds a commanding lead in the sector?
Jigar Shah joins Cleaning Up fresh from his four-year tenure as Director of the U.S. Department of Energy's Loan Programs Office (LPO). Appointed in 2021, Shah transformed the once-obscure office into a clean-tech commercialization powerhouse, committing more than $100 billion in loans to U.S.-based companies. But with a new administration implementing sweeping cuts to the federal workforce, is all his work at risk? Or will market forces and the very real risk of blackouts keep clean energy innovation moving forward?
In this conversation with Michael Liebreich, Shah shares how he turned the LPO into a driving force for clean technology deployment, and what lessons can be learned by policymakers, investors and entrepreneurs. He also offers a candid assessment of the opportunities and challenges across key sectors—from advanced nuclear to sustainable aviation fuels.
Leadership Circle
Cleaning Up is supported by the Leadership Circle, and its founding members: Actis, Alcazar Energy, Davidson Kempner, EcoPragma Capital, EDP of Portugal, Eurelectric, the Gilardini Foundation, KKR, National Grid, Octopus Energy, Quadrature Climate Foundation, SDCL and Wärtsilä. For more information on the Leadership Circle, please visit https://www.cleaningup.live.
