Raser Technologies Inc. (NYSE:RZ) has received a US$32.99 million grant from the U.S. Treasury Department for its Thermo No. 1 Geothermal Plant in Utah.
The grant will come from funding allocated in the American Recovery and Reinvestment Act. Raser plans to use the new capital to eliminate debt and obligations relating to the Thermo No. 1 project, also known as the Hatch geothermal power plant.
The Hatch project has presented some difficulties for Raser. In September, it was reported Hatch's geothermal wells were not producing water hot enough to generate power. As a result, the plant has not been able to run at full capacity (14 megawatts). Currently, it is only producing 5 megawatts -- it takes 4 MW to power the plant.
To deal with the heating problems, Raser conducted drilling to rework its wells. This construction was estimated to cost around US$10 million. The added drilling and lack of power production has led the project to incure more debt than expected; this is where the government grant comes in.
Nick Goodman, CEO of Raser Technologies, said, "These grant funds place the Company in a strong position to continue developing our extensive geothermal assets, and to deliver clean renewable energy." At the moment, Raser Technologies is developing projects in Nevada, Utah, Oregon, and New Mexico. The company also owns geothermal lands in Indonesia.
Read the full story at Market Watch: Raser Receives Approval for $32.99 Million U.S. Treasury Grant
Image courtesy of Raser Technologies
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