Energy Department drops $4.9 billion loan for Grain Belt Express transmission line

The U.S. Department of Energy has canceled a federal loan guarantee for the Grain Belt Express, a massive wind-energy transmission line planned to run through four Midwestern states.

David Gelles reports for The New York Times.

In short:

The $11 billion Grain Belt Express project aimed to connect Kansas wind farms with power markets in Illinois and Indiana via 800 miles of new transmission lines.
Opposition from landowners and pressure from Republican officials, including Senator Josh Hawley and President Trump, pushed the Energy Department to revoke the $4.9 billion federal loan guarantee.
Invenergy, the company behind the project, says it will try to move forward with private financing but faces ongoing legal and regulatory challenges.

Key quote:

“This move demonstrates a long-overdue recognition of the voices of rural communities who have consistently and clearly expressed their deep concerns about the project’s impact on their land, livelihoods and private property rights.”

— Garrett Hawkins, president of the Missouri Farm Bureau

Why this matters:

The collapse of federal support for the Grain Belt Express reflects growing political battles over how the U.S. expands its energy grid. Modern transmission lines are critical for moving renewable energy from rural areas where it’s generated to cities where demand is highest. Without new long-distance lines, wind and solar projects can stall, leaving fossil fuel plants running longer. At the same time, opposition from landowners highlights the tension between national climate and energy goals and local property rights. The debate will shape how quickly the U.S. can modernize its grid and whether rural communities bear the costs — or share in the benefits — of the energy transition.

www.nytimes.com

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