Geothermal co Ormat in $350m funding deal for Nevada projects

Ormat Technologies CEO Dita Bronicki said that the funding program "not only is cost effective for Ormat, but also allows us to create numerous 'green' jobs."

Ormat Technologies Inc. (NYSE: ORA) said that it arranged credit facilities of up to $350 million with John Hancock Life Insurance Company (USA). Ormat picked John Hancock to arrange senior secured construction and term loan facilities under a US Department of Energy (DOE) loan guarantee application.

The agreement with John Hancock was through Ormat unit Ormat Nevada Inc. The funding will be used for three geothermal projects currently under construction in Nevada.

The three projects are the McGinness Hills, Jersey Valley and Tuscarora geothermal projects. Each of the projects has a 20-year power purchase agreement with Nevada Power Company, a subsidiary of NV Energy. Collectively, the three projects represent between 60 MW and 120 MW of generation capacity.

Under a US Department of Energy program, the DOE can provide a loan guarantee for up to 80% of loans provided to certain qualified renewable technologies.

John Hancock Head of Power & Infrastructure Finance John Anderson said, "We are delighted that we can continue to expand our work under the FIPP program with a company that is as strong a leader in the US renewable energy industry as Ormat."

Ormat Technologies CEO Dita Bronicki said that the funding program "not only is cost effective for Ormat, but also allows us to create numerous 'green' jobs."

Ormat Technologies closed on Friday at $27.82, giving a market cap of $1.26 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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