Ormat Nevada drops application for DOE loan guarantee

(ADPnews) - Dec 29, 2010 - US geothermal power firm Ormat Nevada has decided not to proceed with its application for USD 330 million (EUR 250.2m) in Department of Energy (DOE) loan guarantee for three geothermal projects.

The company would seek commercial financing for the projects instead of submitting the Part II of the DOE loan guarantee programme application, its parent Ormat Technologies (NYSE:ORA) said in a statement on Monday.

The decision was motivated by uncertainties in the permitting process and the transaction costs associated with the programme, Ormat Technologies added.

Under the Financial Institution Partnership Programme through which the DOE provides loan guarantees, projects supported by the programme must get all the required permits by September 2011.

Ormat Nevada has taken the decision in coordination with US John Hancock Life Insurance Company, its financial applicant under the Financial Institution Partnership Programme.

The Wister, CD-4 and Dead Horse Wells geothermal projects are under construction in the US states of California and Nevada.

(USD 1 = EUR 0.758)

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