Exclusive: Geothermal Developer Set To Scope For Financing For $200M California Project
A Reno, Nev., geothermal developer plans to start talks with banks to finance the construction of a utility-scale project, which is set to go online in California over the next two years.
Ram Power says it plans to begin approaching project finance banks in the next few weeks to arrange debt financing supporting the construction of its Geysers project in Northern California’s Sonoma County, an industry source tells G.E.R. The project is expected to cost roughly $200 million to develop and could generate up to 30 megawatts of electricity.
The developer is reportedly aiming for a financing package with a 75:25 or 80:20 debt-to-equity ratio.
Ram, which is close to signing an Engineering, Procurement and Construction (EPC) contract for the Geysers project, aims to close financing in the third quarter.
Geysers, which is backed by a 20-year Power Purchase Agreement with the Northern California Power Agency, is slated to reach commercial operation in 2013.
Also, in the pipeline is Ram Power’s in California’s Imperial Valley, which fully developed could generate about 150 megawatts of electricity.
South of the border, in Nicaragua, Ram Power recently closed a $160 million debt financing supporting the expansion of its San Jacinto-Tizate geothermal power plant.