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US Geothermal receives US$97m in funding for Neal Hot Springs project

Drilling rig at Neal Hot Springs, Oregon (source: US Geothermal)
Alexander Richter Alexander Richter 31 Aug 2011

U.S. Geothermal Inc. reported the first funding drawdown under the U.S. Department of Energy $96.8-million loan guarantee to construct its planned 23-megawatt-net power plant at Neal Hot Springs in Eastern Oregon.

In an announcement today, U.S. Geothermal Inc. reported the first funding drawdown under the U.S. Department of Energy $96.8-million loan guarantee to construct its planned 23-megawatt-net power plant at Neal Hot Springs in Eastern Oregon. As of August 25, all conditions precedent to funding have been met, and the required project equity has been spent by USG Oregon LLC. USG Oregon is owned 80% by U.S. Geothermal Inc. and 20% by Enbridge USA Inc. On August 30, the Federal Financing Bank, as the project lender, issued payments to vendors, totaling $2.3 million. Future project construction costs will also be paid directly by the Federal Financing Bank.

In February 2011, the Neal Hot Springs development project completed the closing of the loan guarantee under DOE’s Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005 to support the deployment of innovative clean energy technologies. The loan guarantee backs the project loan to the Neal Hot Springs project from the U.S. Treasury’s Federal Financing Bank. The $96.8-million DOE loan guarantee represents 75% of the $130 million total project cost.”

Source: Company release via Marketwire