British Columbia, Canada — Nevada Geothermal Power Inc. (NGP) has received a conditional commitment from John Hancock Financial Services as lead lender for a US $98.5 million loan and an offer for a conditional commitment from the U.S. Department of Energy (DOE) as loan guarantor for up to 80 percent of the loan amount.
NGP, through its subsidiaries Nevada Geothermal Power Company and NGP Blue Mountain I LLC, is developing the Blue Mountain project, a 49.5-megawatt (MW) geothermal power plant located in Humboldt County in northwestern Nevada.
The Blue Mountain project consists of a geothermal well field, fluid collection and injection systems that enable energy to be extracted from rock and fluid below the earth’s surface, and 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.
NGP, 100% owner of the Blue Mountain project, and John Hancock Financial Services, the lender-applicant and lead lender, are some of the first geothermal proponents to access a Department of Energy (DOE) commercial loan guarantee through the Financial Institution Partnership Program (FIPP), a program supported by the 2009 American Recovery and Reinvestment Act.
“The John Hancock senior debt facility and the DOE loan guarantee will provide low cost, long-term financing for our leading Faulkner 1 project and greatly enhance our ability to provide permanent clean energy jobs in northern Nevada. We appreciate the continued assistance and cooperation of our partner, the Trust Company of the West, during this process,” said Brian Fairbank, president and CEO of Nevada Geothermal Power.