U.S. Geothermal Receives $10.7 Million Cash Grant for San Emidio Project (News Release - PDF)
U.S. Geothermal Inc., announced today that its wholly owned subsidiary USG Nevada LLC received its $10.7 million cash grant from the U.S. Department of Treasury. The cash grant is for Specified Energy Property in Lieu of Tax/Credits relating to the San Emidio geothermal power plant under Section 1603, Division B of the American Recovery and Reinvestment Act of 2009. An existing $7.5 million bridge loan and its associated administrative costs have been paid in full with the balance of $2.9 million retained by the company.
Electrical energy from the new power plant is being sold for $89.75 per megawatt hour, subject to a 1% annual escalator, under the terms of a 25-year Power Purchase Agreement with Sierra Pacific Power Company. Using the existing production and injection wells, the new San Emidio plant is projected to generate an average of approximately 75,000 MWHs of electrical power each year and replaces an existing facility that, prior to being removed from service, generated approximately 23,000 MWHs annually for some 20 years.
