Utah, United States [RenewableEnergyWorld.com] Raser Technologies, Inc. announced that it has signed a commitment letter with Merrill Lynch for the project financing and tax equity funding for its planned 10 megawatt (MW) Lightning Dock geothermal power plant in New Mexico.
The commitment letter provides for non-recourse debt financing and tax equity capital for Raser’s first commercial geothermal project in New Mexico. The tax equity capital will be provided by Merrill Lynch and by possible additional partners.
The commitment letter provides for up to approximately US $43 million of construction and debt financing and up to approximately US $27 million of tax equity capital. The actual amount of funding to be provided, however, will be determined by the parties and the negotiation of definitive financing documentation.
The plant is designed to generate net 10 MW of electrical power with zero emissions and will use PureCycle geothermal system technology from UTC Power and is expected to be online in the first quarter of 2009.
This is the third financing commitment announced under an agreement signed earlier this year that sets forth general terms relating to the structuring and financing of up to 155 MW of Raser’s geothermal power projects. Merrill Lynch also helped to finance Raser’s 10-MW Beaver County project in Utah. RenewableEnergyWorld.com recently reported that that project could begin feeding power into the grid within the next few months.