Raser Technologies one step closer to receiving DOE loan guarantee
Raser Technologies could be one step closer to receiving a Department of Energy loan guarantee for the financing of 80% of the expected $190 million project, close to its existing Thermo No.1 plant in Beaver County, Utah. DOE notified that it Raser's application entered the next step in the due dilligence process.
In a recent company statement, Raser Technologies, Inc. (NYSE:RZ) informed the public about a Department of Energy (DOE)notification, that the company’s “loan guarantee application has been approved to proceed to the next stage of due diligence.” The application, so the company statement “is for loan guarantees to help finance up to 80% of the expected $190 million project.
The guaranteed loan is expected to be used for the construction of approximately 42 MW of gross binary-cycle geothermal power plant capacity near the company’s existing Thermo No. 1 project in Beaver County, Utah. Raser anticipates that, pending completion of additional due diligence by the DOE, drilling and construction will begin later this year.”
On February 26, 2009 Raser submitted an application for a project on the Thermo resource to the DOE’s Energy Efficiency, Renewable Energy and Advanced Transmission and Distribution Solicitation loan guarantee under Title XVII of the Energy Policy Act of 2005. The DOE issued notification that (the company’s) project application was complete and that the power plant technology choice qualifies as new or improved under the program, and the project has been selected to proceed in the project loan guarantee process.
Raser CEO Brent M. Cook said, “This announcement from the DOE demonstrates that Raser Technologies is well positioned to take advantage of government stimulus programs targeted for renewable energy. The funds obtained with the loan guarantee program would enable us to develop our current geothermal resources in southern Utah. It would be a great step forward for the company.”
Raser’s Thermo No. 1 geothermal power plant recently began selling power to Anaheim, California under a long-term power purchase agreement. Raser’s unique power plant design, coupled with state-of-the-art generators similar to those used in its Thermo No. 1 plant, allow Raser to utilize low temperature resources and build power plants substantially faster than typical power plants.”
Source: Company release via BusinessWire