News

Nevada Geothermal Power receives loan package commitment from John Hancock and DOE

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 15 Jun 2010

Nevada Geothermal Power received a conditional commitment from John Hancock Financial Services as lead lender for a $US98.5 million loan and an offer for a conditional commitment from DOE as loan guarantor for up to 80 percent of the loan amount.

Nevada Geothermal Power Inc. (NGP), announced today “that it has received a conditional commitment from John Hancock Financial Services as lead lender for a $US98.5 million loan and an offer for a conditional commitment from the U.S. Department of Energy (DOE) as loan guarantor for up to 80 percent of the loan amount.”

The release continues saying that “NGP, through its subsidiaries Nevada Geothermal Power Company and NGP Blue Mountain I LLC (“Blue Mountain”), is developing the Blue Mountain project, a 49.5 megawatt geothermal power plant located in Humboldt County in northwestern Nevada. The Blue Mountain project consists of a geothermal well field, 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 project has a 20-year power purchase agreement to sell electricity and renewable energy credits.

NGP, 100% owner of the Blue Mountain project, and John Hancock Financial Services, the lender-applicant and lead lender, are the first geothermal proponents to access a Department of Energy (DOE) commercial loan guarantee through the Financial Institution Partnership Program (“FIPP”), a program supported by the 2009 American Recovery and Reinvestment Act. John Hancock Financial Services is a leading institutional energy lender with experience in fixed rate utility lending, project financing and private equity investments, including nine prior geothermal projects.

Brian Fairbank, President and CEO of Nevada Geothermal Power said, “The John Hancock senior debt facility and the DOE loan guarantee will provide low cost, long-term financing for our leading Faulkner 1 project and greatly enhance our ability to provide permanent clean energy jobs in northern Nevada. We appreciate the continued assistance and cooperation of our partner, the Trust Company of the West, during this process.”

Recep C. Kendircioglu, a Managing Director at John Hancock stated, “John Hancock is very pleased that Blue Mountain is the first project to be offered a conditional commitment for a loan guarantee through FIPP. We are looking forward to a timely closing and to support NGP in its future endeavors.”

Source: Company release via Marketwatch