US Geothermal secures USD 31m loan for San Emidio project in Nevada
Oct 1, 2013 - US Geothermal Inc (TSE:GTH) will receive a USD-30.7-million (EUR 23m) loan from Prudential Capital Group to support the first phase of its San Emidio geothermal project in Nevada.
US Geothermal’s unit USG Nevada LLC has struck a long-term project loan agreement with Prudential Capital, part of financial services provider Prudential Financial Inc (NYSE:PRU), the geothermal projects operator said on Monday. The loan was signed for a 25-year period and has a fixed interest rate of 6.75% annually.
The financing will go to pay down the construction credit facility for the San Emidio project’s first stage, support project reserves and cover some closing expenses. US Geothermal will use as much as USD 2.56 million to strengthen its working capital and back the development of San Emidio’s second phase.
The first stage of the project, which was completed in May 2012, included the construction of a 9-MW plant that substituted an old 3.6-MW facility. The new geothermal system uses existing geothermal fluid flow at the site. In the second phase of the project, US Geothermal will drill for new production and injection wells and improve transmission. It will aim to add production capacity of 11 MW, with the plant expected to be put on stream in 2015. Last month, the firm started drilling works for the project’s second phase.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.