U.S. Energy Dept. Earmarks $760 Million To Fund New Geothermal and CO2-Capture Projects
The U.S. Energy Dept. gave a boost to new alternative-energy projects on June 10 by announcing a $102-million conditional loan guarantee for a 22-MW geothermal plant in Oregon, the first for that technology. It also agreed to provide $663 million in grants for three other projects to test the capture and storage of CO2 from industrial sources.
The Neal Hot Springs project in eastern Oregon, being developed by Boise-based US Geothermal Inc., would use advanced geothermal technology that is more efficient and can exploit lower-temperature underground heat sources, the company says. It estimates the total project cost at $119 million and says the facility will be in operation by 2012. The developer has already obtained a 25-year power-purchase agreement to sell all its electricity to the Idaho Power Co., Boise. DOE would not say how soon it expects to finalize US Geothermal’s loan guarantee, but a company spokesman predicts it will be shortly.