no geothermal DOE loan

Ormat Nevada Inc., a unit of Ormat Technologies, Inc., has decided not to proceed with Part II of the Department Of Energy’s loan guarantee program application for the Wister, CD-4 and Dead Horse Wells geothermal projects, currently under construction in California and Nevada.

Ormat said uncertainties in the permitting process and the transaction costs associated with the loan guarantee program were reasons for removing the projects from the application. Under guidelines of the Financial Institution Partnership Program (FIPP) supported by Section 1705 of the American Recovery and Reinvestment Act, projects under the loan guarantee program must have all necessary permits in place by September 2011.

The decision was made in coordination with John Hancock Life Insurance Co. relative to the pending application for up to $330 million in DOE funding. Ormat has decided to explore commercial financing for the projects in lieu of DOE support.

Ormat’s other geothermal projects in Nevada– Jersey Valley, McGinness Hills and Tuscarora– are covered under a separate DOE application in process. Ormat expects to secure financing for these three Nevada projects under the FIPP program before the program expires.

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