U.S. Geothermal moving into review stage for $85M DOE project loan 
by admin
Published: May 27,2009
Time posted: 1:00 am
Boise-based renewable energy firm U.S. Geothermal is moving into the due diligence review phase of its application for a $85 million Department of Energy loan to support development of its Neal Hot Springs geothermal project in eastern Oregon.
The $106 million binary cycle power plant is designed to deliver 22 megawatts of power and expected to begin commercial operations in late 2011. The DOE loan would cover 80 percent of the project’s total capital cost and serve as a combined construction and long term loan, according to a press release.
U.S. Geothermal submitted the application in February 2009 to the DOE’s Energy Efficiency, Renewable Energy and Advanced Transmission and Distribution Technology loan guarantee program, which operates under the Energy Policy Act of 2005. The program makes available $10 billion in loan guarantees to support projects that use new or “significantly improved” technologies
The due diligence phase of the application process includes a review of technical, business and financial plans; organizational structure; contractors; vendors; and engineering and construction entities to be used in the project. Once the review is completed, the loan application moves into the finalization stage, which must be finished by September 2009.
“As we enter into due diligence with the DOE on this important $85 million loan we can now work to complete the balance of the project requirements necessary to construct an advanced and highly efficient geothermal power plant,” Daniel Kunz, CEO and president of U.S. Geothermal, stated in a release.
Negotiations are still ongoing for a long term power purchase agreement for sale of the energy produced at Neal Hot Springs, but the company signed an interconnection agreement for the project with Idaho Power earlier this year.
U.S. Geothermal currently operates the only commercial geothermal power plant in Idaho, located at Raft River about 200 miles southeast of Boise. The Raft River plant has a 20 year contract with Idaho Power to sell 10 MW of energy and began operations in Jan. 2008. The company also operates the San Emidio geothermal power plant in Nevada, about 100 miles north of Reno near the town of Gerlach.
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