Utah, United States [RenewableEnergyWorld.com] As Raser Technologies, Inc. gears up to complete its first distributed geothermal project in Utah, the company announced yesterday that it has received the final US $21 million tax equity payment that will play a large part in financing its 10-megawatt (MW) Thermo geothermal power project.
The funding arrangement previously provided approximately $30 million of non-recourse debt financing and tax equity capital to construct the Thermo geothermal power plant. Under this arrangement, the tax equity capital is provided by Raser’s tax equity partner in exchange for most of the tax benefits provided by the renewable energy project.
Raser’s geothermal plant, based on smaller binary-cycle units designed to utilize low-temperature resources, will theoretically power 9,000 homes when fully up and running. The City of Anaheim, California has agreed to purchase the power from the project for the next 20 years.
This final tax equity payment is expected to help Raser to complete the construction of its first Thermo plant by the end of October, just six months after the groundbreaking ceremony.
“We are proud to say that this first plant is scheduled to be producing power, in just six months from our groundbreaking in May of this year. Before now, the average time to develop a geothermal power project has been approximately five to seven years,” said Brent Cook, CEO of Raser.