Raser Technologies sells 51% stake in Lightning Dock project
Drilling start at Lightning Dock project, New Mexico (source: Raser Technologies)
Alexander Richter
5 Oct 2010
Raser Technologies agrees to US$15.3m financing deal for its Lightning Dock project in New Mexico, selling a 51% ownership in the project to an investment group.
Reported from New Mexico, “Geothermal power developer Raser Technologies, Inc., has agreed to a $15.3 million financing deal for its Lightning Dock Geothermal Project in New Mexico.
The deal will see a 51% ownership in the project for the investment group Evergreen-FE Lightning Dock, a collaboration between investment firm FE Clean Energy Group and renewable energy finance company Evergreen Clean Energy.
The project in Animas County is expected to see 15 megawatts of generating capacity developed. Power is to be sold under a 20-year power purchase agreement with Salt River Project of Phoenix, Arizona.
Raser will develop and manage the project, subject to final agreements being in place.
The finance deal will provide an initial investment in the form of loans for up to $2 million in order to continue developing the geothermal resource at the site.
Once all agreements have been finalized, the remaining balance of this loan will be credited to Evergreen-FE as it transfers funds for its ownership in the project.
George Sorenson, Chairman of FE Clean Energy Group, said: “We are excited to move forward with Raser and believe the Lightning Dock project will be a successful project providing clean, renewable energy to residents in Phoenix, Arizona.”
Lightning Dock: Raser’s Lightning Dock project has seen the company reopening a well that was first drilled in 1984 but then abandoned. The company said test results from the well have been “encouraging”, indicating geothermal water temperatures greater than 300 degrees Fahrenheit with “favorable” chemical properties.
The company is in “advanced discussions” with equipment manufacturers to secure binary cycle generating plants for the Lightning Dock site.
Raser is expecting to negotiate a fixed-price engineering, procurement and construction deal for the generating plant, for which the EPC contractor would provide construction financing.
Dean Rostrom, Principal of Evergreen Clean Energy, said: “We are working on the construction and financing arrangements and anticipate moving towards conclusion over the next several weeks. The Lightning Dock project is moving along as planned and we look forward to a successful project.”
Source. Brighter Energy
