Oregon Geothermal Project Wins $102 Million Federal Loan Guarantee

[Ed Barrow]

The renewable energy development company U.S. Geothermal, Inc. has been offered a $102 million loan guarantee by the U.S. Department of Energy to construct its planned 22-megawatt power plant at Neal Hot Springs in eastern Oregon. Neal Hot Springs is the first geothermal project to be offered a conditional commitment for a loan guarantee under DOE's Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005 to support the deployment of innovative clean energy technologies. Once certain conditions are satisfied, the deal will guarantee the $102 million loan to the Neal Hot Springs project from the U.S. Treasury's Federal Financing Bank.

"There is tremendous potential for renewable geothermal energy and the jobs for Oregon that come with it," said U.S. Senator Ron Wyden, an Oregon Democrat. "The announcement helps make commercial development of geothermal energy at the Neal Hot Springs a reality. This is good news for Oregon and the environment."

Idaho's largest utility, Idaho Power Company, has signed a 25-year power purchase agreement with U.S. Geothermal's wholly owned subsidiary, USG Oregon LLC, for up to 25 megawatts of power per year beginning in 2012. Idaho Governor Butch Otter said the Department of Energy's support of U.S. Geothermal, a company headquartered in Boise, goes to the heart of the 60-year relationship between the agency and the state of Idaho, home to the Idaho National Laboratory since 1949.

"Advanced thinking and unsurpassed commitment have formed the bond between the Department of Energy and Idaho for more than six decades, and it has created this critical new opportunity to inject clean, renewable baseload energy into our region's power grid," Governor Otter said. "We couldn't be prouder of our partners at U.S. Geothermal. They've shown once again the quality of their global leadership in renewable energy."

"This loan commitment provides our company with access to low cost capital and is a major milestone accomplishment," said U.S. Geothermal President CEO Daniel Kunz. "Neal Hot Springs is close to transmission lines and is in a great location to serve Idaho Power Company's customer base and the rapidly growing Pacific Northwest energy market."


http://www.ens-newswire.com/ens/jun2010/2010-06-14-091.html

[madokie]

1. On the surface I like the idea of geothermal

I guess there is some down sides but I think from what I've read the positives out weight them.
rec