Nov 15, 2011 - US Geothermal Inc (TSE:GTH) yesterday said its unit USG Nevada LLC has obtained a USD-9-million (EUR 6.6m) bridge loan to a cash grant for the Phase I power facility at the San Emidio geothermal project in Nevada.
The company has already received an initial portion of USD 7.5 million of the loan, which is being provided by Ares Capital Corp. The second tranche of USD 1.5 million will be made available when the 8.6-net-MW Phase I plant goes online.
When the plant becomes operational, US Geothermal will file an application with the US Treasury for a cash grant of an estimated USD 10 million.
The facility is being constructed by a unit of Science Applications International Corp (NYSE:IBM), which is also providing a construction loan. The plant is to replace an existing facility of 3.6-net-MW capacity and is expected to come on stream in December this year.
The San Emidio geothermal project is a two-phase scheme that has power purchase and interconnection agreements for a total of 19.9 MW.