Loan guarantee issued for NV geothermal project

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RENO - The Department of Energy has announced a partial guarantee for a $98.5 million loan for a geothermal project in northwest Nevada.

The Blue Mountain project in Humboldt County will collect geothermal energy from beneath the surface and convert it into electricity.

Energy Secretary Steven Chu today said the project has a 20-year power purchase agreement to sell electricity to renewable energy credits to Nevada Power Co.

The loan guarantee was issued under the Financial Institution Partnership Program, part of the American Recovery and Reinvestment Act.

Under the financing, the DOE provides a partial guarantee for up to 80 percent of a loan for a renewable energy project.