Ormat offered US$350m loan guarantee for up to 121MW of 3 Nevada projects
Ormat Technologies subsidiary Ormat Nevada receives offer of conditional commitment from DOE that would provide a partial guarantee for up to $350 million loan to support development of 121 MW of three Nevada based projects planned by the company.
In a release by the company, “Ormat Technologies, Inc. (NYSE: ORA) announced its subsidiary, Ormat Nevada Inc. received an offer of a conditional commitment from the DOE that would provide a partial guarantee for up to a $350 million loan to support a geothermal power project expected to generate up to 121 MW of power from three Nevada based facilities built in two phases.
The three facilities — McGinness Hills, Jersey Valley and Tuscarora — will provide clean and baseload power through 20-year power purchase agreements with Nevada Power Company, a subsidiary of NV Energy.
Dita Bronicki, CEO of Ormat Technologies said, “The DOE 1705 program provides us with financing terms that enables us to finance a portfolio of facilities that are being developed in two phases. This innovative approach to project finance was made possible thanks to the DOE loan guarantee. We are thankful to the DOE’s Loan Programs Office and the rest of the team that moved the project thus far, and will continue working towards the closing of this transaction.”
The facilities utilize Ormat’s proprietary OEC technology, which are commercially proven and installed in approximately 1,370 MW of geothermal power plants and other electricity generating systems around the world. The OEC employs a binary organic Rankine cycle, with hot water drawn from wells deep below the Earth’s surface. The water’s thermal energy is used to heat a secondary fluid that is vaporized and then forced through a turbine to generate electricity.
Lender-applicant, John Hancock Life Insurance Company (USA) submitted the application under the Financial Institution Partnership Program (FIPP).”