Raser Secures Project Financing for 10MW Lightning Dock Geothermal Plant

Raser Technologies has signed a commitment letter with Merrill Lynch for the project financing and tax equity funding for its planned 10MW Lightning Dock geothermal power plant in Hidalgo County, New Mexico.

The commitment letter provides for non-recourse debt financing and tax equity capital for Raser’s first commercial geothermal project to be built in New Mexico.

The tax equity capital will be provided by Merrill Lynch and by additional partners, at the option of Merrill Lynch, which can utilize the many tax benefits provided by the renewable energy project.

The commitment letter provides for up to approximately $43 million of construction and debt financing and up to approximately $27 million of tax equity capital. Under the commitment, approximately $16 million of the tax equity will be used to pay down the construction debt funding at the time the plant is placed-in-service.

This is the third financing commitment announced under an agreement signed earlier this year that sets forth general terms relating to the structuring and financing of up to 155MW of Raser’s geothermal power projects.