Raser Technologies, Inc. (NYSE Arca: RZ) announced that it has signed a commitment letter with Merrill Lynch for the project financing and tax equity funding for its planned 10 megawatt (MW) Thermo geothermal power plant near Beaver, Utah.
The commitment letter provides for non-recourse debt financing. Under the agreement, the tax equity capital will be provided by Merrill Lynch and/or by additional partners, at Merrill Lynch’s option, that can utilize the many tax benefits provided by the renewable energy project.
The commitment is the second announced under an agreement signed earlier this year that provides Merrill Lynch the right to arrange or provide non-recourse project financing for up to 155 MW of Raser’s geothermal power projects.
The plant, using PureCycle® geothermal technology from UTC Power, a United Technologies Corp. (NYSE: UTX) company, is designed to produce 10 MW of electrical power with zero emissions, and is expected to be online before the end of 2008. Raser will act as engineering, procurement and construction contractor of the project.
About Raser Technologies
Raser is an environmentally focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s SymetronTM technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology segment focuses on extended-range plug-in hybrid vehicle solutions and using Raser’s award-winning SymetronTM technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.
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