Provo, Utah [RenewableEnergyAccess.com] Raser Technologies, Inc. has announced that it has entered into an agreement with Merrill Lynch for the structuring and financing of up to 155 megawatts (MW) of Raser’s geothermal power plants. The partnership is for non-recourse project financing including a commitment letter from Merrill Lynch to provide funding for the construction of Raser’s first geothermal power plant.
The financing commitment from Merrill Lynch for the first 10.5 MW project is up to $44 million, in the form of 15-year, fully amortizing fixed rate notes, to fund approximately $33 million of total construction costs, in addition to a letter of credit, reserve accounts, accrued interest, transaction fees and other costs. Raser expects the plant to be in service by the third quarter of 2008.“This is the first of what we expect to be many agreements to accelerate the development of clean, renewable energy production utilizing our geothermal technology and resources. This unique agreement provides the required up-front capital to complete our initial projects and keep us on pace to fulfill our goal to initiate the development of 100 MW per year for the first three years of our geothermal power production effort, and 150 MW each year thereafter,” said Brent Cook, Raser’s CEO.