US Geothermal Inc. has been granted a $102-million loan guarantee by the US Department of Energy (DOE) to construct a 22-MW power plant in eastern Oregon.
The site, Neal Hot Springs, is the first geothermal project to be offered a conditional commitment for a loan under the DOE’s Title XVII loan guarantee program, created by the Energy Policy Act of 2005. Located close to the Idaho border, Idaho’s largest utility Idaho Power Co. signed a 25-year PPA with US Geothermal’s wholly owned subsidiary USG Oregon LLC to procure up to 25 MW of power per year beginning in 2012 from the project.
"This loan commitment provides our company with access to low cost capital and is a major milestone accomplishment," said US Geothermal President CEO Daniel Kunz. "Neal Hot Springs is close to transmission lines and is in a great location to serve Idaho Power Company’s customer base and the rapidly growing Pacific Northwest energy market."
The US has had the greatest increase in installed geothermal capacity from 2005 to 2010 with 530 MW.
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