Nevada Geothermal Project Gets DOE Loan Guarantee
DOE announced on September 7 a partial guarantee for a $98.5 million loan to the 49.5-megawatt Blue Mountain "Faulkner 1" geothermal project in northwestern Nevada. The project consists of a geothermal well field along with fluid collection and injection systems that enable energy to be extracted from rock and fluid below the Earth's surface. It uses a power plant that converts geothermal energy into electricity. The project has a 20-year power purchase agreement to sell electricity and renewable energy credits to Nevada Geothermal Power, Inc.
The loan guarantee was issued under DOE's Financial Institution Partnership Program (FIPP), which is supported by the American Recovery and Reinvestment Act. FIPP is designed to expedite the loan guarantee process for renewable energy generation projects that use commercial technologies. It also helps to expand credit capacity for financing of U.S. renewable energy projects. In a FIPP financing, DOE provides a partial guarantee for up to 80% of a loan provided to a renewable energy project by qualified financial institutions. DOE has now either issued loan guarantees or offered conditional commitments for loan guarantees to support 14 clean energy projects. See press releases from DOE and Nevada Geothermal, as well as the Loan Guarantee Program Web site.