Disbursements from “Inflation Reduction Act” are slow for many start-ups
The act, passed in August 2022, has nearly $370 billion allocated for climate and clean energy provisions.
Some American clean energy and technology start-ups are struggling to keep afloat while waiting for the U.S. government to disburse the pledged loans and funds under the landmark “Inflation Reduction Act” (IRA).
That’s according to this article from OilPrice.com which notes that “several start-ups have already filed for bankruptcy, others have flagged the ability to continue as a going concern or hired advisors to evaluate financing and strategic alternatives as soaring construction costs and high interest rates challenge their initial plans and timelines for having production sites up and running.”
The IRA, passed in August 2022, has nearly $370 billion allocated for climate and clean energy provisions, including investment and production credits for solar, wind, energy storage, critical minerals, funding for energy research, and credits for clean energy technology manufacturing such as wind turbines and solar panels.
The article notes, however, that many developers and manufacturers are still waiting for guidance on which specific technologies – including in the hydrogen and low-carbon fuels industries – would qualify for tax credits under the IRA. While big, global corporations can afford to wait on the federal government, start-ups are in a a very different financial position.
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