Nevada Geothermal Power may have to transfer plant to lender

Blue Mountain Faulkner-1, geothermal power plant, Nevada (source: Nevada Geothermal Power)
Alexander Richter 26 Sep 2012

WIth an increasing drop in capacity to generate power, Nevada Geothermal Power might have to transferring the Blue Mountain geothermal power plant to the mezzanine lender.

Following a statement by the company, Nevada Geothermal Power considers one possibility to resolve potential loan issues, to be the transfer of ownership of its Blue Mountain geothermal power plant in Nevada.

The company is faced with increasingly declining steam levels at its plant. With currently only 35 MW running of the installed capacity of 49 MW, the company received a new report by GeothermEx that states that it might decline to about 15 MW by 2020.

With the drop in output the company cannot generate sufficient revenues and income from electricity sales to serve a mezzanine loan from EIG Global Energy Partners LLC, so Andrew Studley, the CFO of NGP.

Source: Company release via Marketwatch, Bloomberg