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Ram Power to arrange $200m debt financing for project at The Geysers, California

Drilling crew at the Geysers project site, Western GeoPower (source: Axino Capital)
Alexander Richter 9 Jan 2011

Ram Power is said to start approaching project finance banks for debt financing of US$200m for its project at the Geysers, in Northern California.

In reports from California, geothermal developer Ram Power is planning to start talks with banks to finance the construction of a utility-scale project, which is set to go online in California over the next two years.

The company is said to “begin approaching project finance banks in the next few weeks to arrange debt financing supporting the construction of its Geysers project in Northern California’s Sonoma County. The project is expected to cost roughly $200 million to develop and could generate up to 30 megawatts of electricity.

The developer is reportedly aiming for a financing package with a 75-25 or 80:20 debt-to-equity ratio.

Ram, which is close to signing an Engineering, Procurement and Construction (EPC) contract for the Geysers project, aims to close financing in the third quarter.

Geysers, which is backed by a 20-year Power Purchase Agreement with the Northern California Power Agency, is slated to reach commercial operation in 2013.

Also, in the pipeline is Ram Power’s Orita project in California’s Imperial Valley, which fully developed could generate about 150 megawatts of electricity.”

Source: IB Times/ Green Energy Reporter