Raser Technologies Obtains Preliminary Financing with Evergreen Clean Energy & FE Clean Energy Group for the Development of t...
October 05 2010 - 7:00AM
Business Wire
Raser Technologies, Inc. (NYSE:RZ), an energy technology
company, announced today that it and its wholly owned subsidiary
Lightning Dock Geothermal HI-01, LLC (LDG) have signed an agreement
with Evergreen-FE Lightning Dock, LLC (“Evergreen-FE”), a
collaboration between the FE Clean Energy Group, a group of funds
focused on investments in renewable energy and energy efficiency
projects, and Evergreen Clean Energy, LLC to fund the resource
development of the Company’s Lightning Dock Geothermal Project in
Animas County, New Mexico.
Lightning Dock Project Expected To
Deliver 15 Megawatts of Geothermal Power To Phoenix, Arizona
(Photo: Business Wire)
The agreement contemplates that Evergreen-FE will invest $15.3
million in LDG to finance the development of the Lightning Dock
Geothermal Project in exchange for a 51% interest in LDG and that
Raser will develop and manage the project, subject to the
negotiation and execution of definitive agreements satisfactory to
the parties. To facilitate the continuing resource development of
the Lightning Dock Geothermal Project while definitive documents
are being completed, the agreement provides for an initial
investment in the form of loans of up to approximately $2 million
to LDG to fund the continued resource development of the project.
The loans will be secured by a first priority lien on certain LDG
equipment. Upon, and subject to, execution of definitive documents
governing Evergreen-FE's equity investment in LDG , the loan
balance will be credited towards the purchase price payable by
Evergreen-FE for its interest in LDG.
George Sorenson, Chairman of FE Clean Energy Group, commented,
“We are excited to move forward with Raser and believe the
Lightning Dock project will be a successful project providing
clean, renewable energy to residents in Phoenix, Arizona.”
Raser recently re-entered a well (TFD 55-7) at Lightning Dock
that was drilled in 1984 and was later abandoned. Initial test
results from the well are encouraging and indicate geothermal water
temperatures greater than 300 degrees Fahrenheit with favorable
chemical properties.
LDG is in advanced discussions with equipment manufacturers to
provide binary cycle generators for the Lightning Dock project. LDG
anticipates negotiating a turnkey, fixed price agreement for
engineering, procurement and construction (EPC) for the project. It
is contemplated that the EPC contractor will provide construction
financing for the project’s generating facility.
Dean Rostrom, Principal of Evergreen Clean Energy added, “We are
working on the construction and financing arrangements and
anticipate moving towards conclusion over the next several weeks.
The Lightning Dock project is moving along as planned and we look
forward to a successful project.”
Raser has a 20-year Power Purchase Agreement (PPA) with Salt
River Project to sell renewable energy from the Lightning Dock
Project into Phoenix, Arizona. When complete, the proposed project
is expected to deliver up to 15 MW of geothermal power.
About FE Clean Energy Group
FE Clean Energy Group manages four funds focused on investments
in the middle market energy efficiency services sector and in
return-driven sustainable development. FE Clean Energy Group
specializes in investing in privately held companies that deliver
energy efficiency, emissions reduction, renewable energy and
reliable power services to the industrial, commercial and public
sectors. FE Clean Energy’s experience is in originating and
structuring energy efficiency and emission reduction project
investments. Further information on FE Clean Energy Group can be
found at: www.fecleanenergy.com
About Evergreen Clean Energy LLC
Evergreen partners with the world’s leading developers to meet
the demand for clean energy in a smart and efficient new way.
Evergreen’s partners contribute the best available natural
resources, latest technologies, and most innovative processes,
while Evergreen contributes an efficient financing program that
accelerates production of clean energy. Further information on
Evergreen may be found at: www.evergreencleanenergy.com
About Raser Technologies
Raser (NYSE: RZ) is an environmental energy technology company
focused on geothermal power development and technology licensing.
Raser’s Power Systems segment develops clean, renewable geothermal
electric power plants with one operating plant in southern Utah and
eight active and early stage projects in four western United
States: Utah, New Mexico, Nevada and Oregon, as well as a
concession for 100,000 acres in Indonesia. Raser’s Transportation
and Industrial segment focuses on extended-range plug-in-hybrid
vehicle solutions and using Raser’s award-winning Symetron™
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.
Further information on Raser may be found at:
www.rasertech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including, but
not limited to, statements regarding; our beliefs about the
proposed Lightning Dock geothermal power project; our beliefs about
our ability to negotiate definitive agreements with Evergreen-FE
relating to its proposed equity investment in LDG;our beliefs about
the strength and enforceability of our agreements; our belief about
our ability to obtain financing and develop future geothermal
projects and the geothermal industry in general. These
forward-looking statements involve certain risks and uncertainties
that could cause actual results to differ, including, without
limitation, the competitive environment and our ability to compete
in the industry; our ability to attract, train and retain key
personnel; and such other risks as identified in our quarterly
report on Form 10-Q for the quarter ended June 30, 2010, as filed
with the Securities and Exchange Commission, and all subsequent
filings.
All forward-looking statements in this press release are based
on information available to us as of the date hereof, and we
undertake no obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of this
press release.
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http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6455227&lang=en
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