Ormat Gets DOE “Solyndra” Loan Before Tea Party Shuts Down Program
Three geothermal projects totaling 113 MW from Israel's geothermal giant Ormat got approvals just in time to get US government support under the Recovery Act Section 1705 loan guarantee this week. Nevada has some of the best geothermal potential among the US states, but has barely begun to develop it: the 113 MW will increase Nevada's geothermal power production by nearly 25%. Under the same program as Solyndra if Ormat Nevada Inc could line up an investor with up private financing by September 30th, under Section 1705, the US Department of Energy would provide a US government guarantee to back the loan in the unlikely event that Ormat was not able to repay its investors. However the loan guarantee has been anathema to the party that now controls the US congress (Utility-Scale Renewable Projects Become a Casualty of Republican Hostage-Taking) and will end this week.