Raser Technologies awarded US$33 million Treasury grant
Raser Technologies, Inc. receives approval for US$ 33 million U.S. Treasury grant application for the Company's Thermo No. 1 geothermal power plant in Utah.
In a release, “Raser Technologies, Inc. announces that the U.S. Treasury has approved its renewable energy grant application for the Company’s Thermo No. 1 geothermal power plant. The grant is provided by the U.S. Treasury Department under the Section 1603 renewable energy grant program created by the American Recovery and Reinvestment Act of 2009. Raser should receive the funds within five business days.
“We are very pleased with the approval of our application,” said Nick Goodman, Chief Executive Officer of Raser Technologies. “These grant funds place the Company in a strong position to continue developing our extensive geothermal assets, and to deliver clean renewable energy.”
As previously announced, the funds will go to retire debt and obligations relating to the Thermo No. 1 Project. In addition to the grant funds, Raser is reaching out to new potential tax equity partners in an effort to capitalize on the remaining estimated $15 to $20 million of tax benefits at the Thermo No. 1 project, such as deductions for accelerated depreciation. As part of the project restructuring announced in December of 2009, Raser became the sole owner of the Thermo No. 1 project, opening the door for Raser to bring in a new tax-equity partner in the future.
Kraig Higginson, Chairman of Raser Technologies, commented, “The approval of our grant application is a positive step in our restructuring and will help us move ahead with additional geothermal projects. There is tremendous opportunity in our resource portfolio, and together with our technology and financing partners, we expect to play a significant role in the geothermal space going forward. I believe that geothermal power will prove to be a major component in the overall renewable energy expansion, and that those who take advantage of the available technologies and financing options, will be well positioned to capitalize on these opportunities.”
The Section 1603 grant program is offered by the U.S. Treasury to qualified renewable energy projects in lieu of investment tax credits or production tax credits. The grant amount for most geothermal projects is equal to 30% of the authorized capital costs of the project.”
Source: company release via businesswire