News

DOE loan guarantee for Nevada Geothermal Power Blue Mountain project

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 9 Sep 2010

The U.S. Department of Energy announces loan guarantee for the financing of the Blue Mountain Faulkner-1 geothermal power plant by Nevada Geothermal Power in Nevada.

Nevada Geothermal Power reported earlier this week the closing of the financing for its Blue Mountain Faulkner-1 geothermal power plant project in Nevada, including the loan guarantee by the Department of Energy. Today now the news on “Energy Secretary Steven Chu announcing a partial guarantee [80%] for a $98.5 million loan to the 49.5 megawatt Blue Mountain geothermal project in Humboldt County in northwestern Nevada.

The loan guarantee is being issued to John Hancock Financial Services to support a loan to a subsidiary of the Nevada Geothermal Power Company.

“Thanks to the leadership of Senator Reid and others in the Nevada delegation, Nevada continues to be a leader when it comes to generating clean, renewable sources of energy,” said the Secretary.

“As I led passage of the stimulus bill, I worked to include the loan guarantee program to help finance clean energy projects like Blue Mountain geothermal that will put Nevadans back to work and bring us closer to energy independence,” said Nevada Senator Harry Reid. “Secretary Chu has been to Nevada many times and I thank him for recognizing the Silver State as a leader in developing these clean energy resources.”

The Blue Mountain project consists of a geothermal well field and fluid collection and injection systems that enable energy to be extracted from rock and fluid below the Earth’s surface, and a power plant that converts geothermal energy into electricity. The energy produced by the power plant is free of greenhouse gas emissions and other air pollutants. The project has a 20-year power purchase agreement to sell electricity and renewable energy credits to the Nevada Power Company.”

Source: Your Industry News