Ormat Technologies Secures $350m DOE Partial Guarantee Loan

Geothermal power company Ormat Technologies secured a Department of Energy partial guarantee loan totaling $350m to build an additional 113 megawatts of geothermal power in Nevada. The DOE finalized three loans on Friday which went to wind, biofuel, and geothermal energy projects across the US. Ormat’s project will increase Nevada’s geothermal capacity by almost 25% through three separate power plant facilities located in Pershing County, Lander County and Elko County.

“The project announced today will produce virtually no greenhouse gas emissions and will create hundreds of new jobs in Nevada,” said US Energy Secretary Steven Chu. Adding 113 MW of geothermal energy is expected to eliminate close to 580,000 metric tons CO2 emissions every year while adding an additional 332 jobs during construction and 64 when the plant is operational.

Geothermal facilities in Pershing County are essentially complete and the plants in Lander and Elko country are expected to be online in 2012. “Support from the 1705 program enables us to expand our geothermal portfolio in the U.S. under financing terms for the two-phase structure of the Project that we would otherwise not obtain in the private markets. Over the long term, we consider this loan to be a favorable financing instrument which will decrease our financing costs.” says Ormat Technologies CEO, Dita Bronicki.



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