Utah, United States [RenewableEnergyWorld.com] Raser Technologies Inc. announced that the U.S. Treasury has approved its renewable energy grant application for the ompany’s Thermo No. 1 geothermal power plant. The grant is provided by the U.S. Treasury Department under the Section 1603 renewable energy grant program created by the American Recovery and Reinvestment Act of 2009. Raser should receive the funds within five business days. The grant amount for most geothermal projects is equal to 30% of the authorized capital costs of the project.
“We are very pleased with the approval of our application,” said Nick Goodman, CEO of Raser Technologies. “These grant funds place the Company in a strong position to continue developing our extensive geothermal assets, and to deliver clean renewable energy.”
As previously announced, the funds will go to retire debt and obligations relating to the Thermo No. 1 Project. In addition to the grant funds, Raser is reaching out to new potential tax equity partners in an effort to capitalize on the remaining estimated $15 to $20 million of tax benefits at the Thermo No. 1 project, such as deductions for accelerated depreciation.
As part of the project restructuring announced in December of 2009, Raser became the sole owner of the Thermo No. 1 project, opening the door for Raser to bring in a new tax-equity partner in the future.
The company has also reached an agreement with project financing partners to extend the final performance and completion test of the Thermo No. 1 Project to June 30, 2010. Raser recently recompleted four wells to reduce the inflow of water from the coolest formations and increase the average temperature of water entering the plant. The company has also made changes to the plant generators to improve efficiency, as well as other modifications to increase the overall output of the plant.
“We are pleased that our financing partners have agreed to this extension. We are working hard to optimize the Thermo No. 1 power plant. I am happy to report that the output of the plant continues to increase as we make certain modifications,” Goodman said.