News

U.S. Geothermal secures $15 million loan facility for San Emidio North

U.S. Geothermal secures $15 million loan facility for San Emidio North San Emidio plant, Nevada (source: U.S. Geothermal)
Alexander Richter 11 Apr 2012

U.S. Geothermal secures $15 million debt financing for its San Emidio North project in Nevada. The loan is provided by Geothermal Regional Center, a special vehicle helping investors to obtain permanent residence status in the U.S.

In an announcement today, U.S. Geothermal Inc. announced “that it signed a Commitment Letter and Term Sheet with Geothermal Regional Center (“GRC”) under which GRC will provide up to a $15 million loan facility for its San Emidio geothermal project.

The loan facility is expected to fund a portion of the development of the San Emidio North (Units 3 and 4) power project including the drilling of geothermal wells, related infrastructure and other development costs. GRC, the only USCIS approved Regional Center that is focused on the geothermal energy sector, plans to raise the capital through the EB-5 Immigrant Investor Pilot Program (the “EB-5 Program”). The EB-5 Program is designed for those foreign high net worth individuals who are interested in obtaining Permanent Residence status through investments in a commercial enterprise which are shown to have significant job creation benefits.

The San Emidio geothermal resource, located in Washoe County, Nevada, is divided into two separate sub-resources: San Emidio South under current development and San Emidio North under planned development. San Emidio South has been producing power since 1987, and a soon to be completed upgrade will triple the output of the project. San Emidio South is also developing Unit 2, a similar power plant module expected to produce 8.6 MW by Q4 2013. The San Emidio North project is planned to add 17.2 megawatts through construction of Units 3 and 4 subject to development of additional production wells, transmission access and a power sales agreement.”

“We are excited to support U.S. Geothermal, Inc. on this promising project and take a new step in growing our EB-5 Investor Program. We see great opportunities in the San Emidio Project and it is a win-win-win business for the geothermal energy industry in the U.S., our investors and the State of Nevada,” said Mr. Gonzalo Lopez Jordan, Managing Partner of Geothermal Regional Center.

The Geothermal Regional Center is supported by Glacier Securities that acts as project oversight consultant.

Source: Release by U.S. Geothermal, Release by Geothermal Regional Center