Sep 26, 2011 - US geothermal power firm Ormat Technologies (NYSE:ORA) has obtained an up to USD-350-million (EUR 260m) loan to be guaranteed by the US Department of Energy (DOE) for geothermal projects development.
The company has signed a 20-year loan deal with US John Hancock Life Insurance Co, it said last week.
Ormat will use the proceeds to finance three geothermal power plants with a combined capacity of 113 MW in the state of Nevada. The projects will be built in two phases, with some 60 MW seen to be deployed in the first phase. The second-phase development depends on the feasibility studies of the geothermal resource and on other conditions in the loan agreement.
The plants will supply energy to Nevada Power Company, a unit of NV Energy (NYSE:NVE), under 20-year power purchase agreements (PPAs).
Construction of the first plant is almost finished. Completion of the first phases of the remaining two plants is expected in 2012.