John Hancock Financial Services has given a conditional commitment to Nevada Geothermal Power Inc. (NGP) as chief lender for a loan valued at $98.5 million. Moreover, the U.S. Department of Energy (DOE) has given a conditional commitment to NGP as loan guarantor for around 80% of the loan.
NGP, by means of its subsidiaries NGP Blue Mountain I LLC and Nevada Geothermal Power Company, is constructing the 49.5 MW geothermal power plant Blue Mountain project situated at Humboldt County in Nevada. This project comprises fluid injection and collection systems as well as a geothermal well field that facilitate energy to be harnessed from the earth. The project consists of a power purchase agreement for 20 years for selling renewable energy credits and electricity.
John Hancock Financial Services and NGP, the Blue Mountain project owner, are the first geothermal supporters to make use of a DOE commercial loan guarantee by means of the Financial Institution Partnership Program (FIPP). The 2009 American Recovery and Reinvestment Act supports the FIPP program.