Nevada Geothermal Power receives grant of US$58 million in lieu of tax credit.
Nevada Geothermal Power Inc. announced that the U.S. Treasury has informed NGP that the Company's application in the amount of US $57.9 million for Specified Energy Property in Lieu of Tax/Credits relating to the Blue Mountain 'Faulkner 1' geothermal power plant has been approved.
In a release, “Nevada Geothermal Power Inc. (NGP) announced that the United States Department of the Treasury has informed NGP that the Company’s application in the amount of US $57.9 million for Specified Energy Property in Lieu of Tax/Credits relating to the Blue Mountain ‘Faulkner 1’ geothermal power plant has been approved under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. Payment of the full amount is expected on or before November 15, 2009.
The ‘Faulkner 1’ geothermal power plant was placed in service on October 9, 2009 and is currently producing power at a sustainable rate of 27 megawatts (MW) net. As previously released, plant output is limited by deep injection capacity. Three additional deep wells are planned to bring the plant up to full production capacity of greater than 40 MW (net). The Company reports that grant funds will be used to complete the additional drilling and pipeline connection.
Plant capacity tests indicate that the power conversion system is approximately 20% more efficient than the base design. The improved efficiency results from both higher brine inlet temperature to the plant and a more efficient power conversion. Thus the company expects the net output of the plant can be increased up to 47 MW (net) with additional fluid production.”
Source: Company announcement via YourProjctecstNews