Raser Technologies receives US$ 7 m through agreement changes with UTC
Raser Technologies has restructured its purchase agreements with subsidiaries of United Technologies Corp. and obtained a refund of more than US$7 million that had previously been deposited in connection with orders of PureCycle(R) power systems of UTC.
As announced by Raser Technologies (NYSE:RZ), the company “has restructured its purchase agreements with subsidiaries of United Technologies Corp.
As part of the restructured agreements, Raser obtained a refund of more than US$7 million that had previously been deposited in connection with orders of PureCycle(R) power systems. Raser will continue to have a preferred relationship for the generating units with United Technologies’ Pratt & Whitney Power Systems (PWPS), which recently assumed the management of the PureCycle power system product line from UTC Power, subject to certain conditions and timeframes.
PWPS will maintain a minimum inventory of 50 of the modular units for Raser’s planned geothermal power projects through 2009. The restructured agreements should help Raser to continue to pursue its rapid deployment strategy and reduce cash committed to deposits for equipment.
Raser is completing the well field and ramp up process for its first commercial geothermal power project using the PureCycle binary cycle geothermal power generating units. Raser noted that the Thermo plant was constructed in just six months using a revolutionary modular construction design, greatly reducing the normal five-to-seven years typically required for traditional plant development and construction technology.
Raser uses the modular geothermal units to generate electricity from underground water at temperatures much lower than other technologies. This opens the door to vast resources of underground heated water that heretofore were believed to be insufficient for generating electricity.
Brent M. Cook, CEO of Raser said, “We are grateful for our strong partnership with PWPS and appreciate their commitment to helping us develop these geothermal power plants. They continue to be very supportive and stand behind their modular units, which continue to perform at higher levels than expected.”
Source: Company statement via Stockhouse