Raser Technologies Moves One Step Closer to Receiving Loan Guarantees from the Department of Energy
Raser Technologies, Inc. (NYSE: RZ), a leading energy technology company, announced today that the Department of Energy (DOE) has notified the company that its loan guarantee application has been approved to proceed to the next stage of due diligence. The application is for loan guarantees to help finance up to 80% of the expected $190 million project. The guaranteed loan is expected to be used for the construction of approximately 42 MW of gross binary-cycle geothermal power plant capacity near the company’s existing Thermo No. 1 project in Beaver County, Utah. Raser anticipates that, pending completion of additional due diligence by the DOE, drilling and construction will begin later this year.
On February 26, 2009 Raser submitted an application for a project on the Thermo resource to the DOE’s Energy Efficiency, Renewable Energy and Advanced Transmission and Distribution Solicitation loan guarantee under Title XVII of the Energy Policy Act of 2005. The DOE issued notification that our project application was complete and that the power plant technology choice qualifies as new or improved under the program, and the project has been selected to proceed in the project loan guarantee process.
Raser CEO Brent M. Cook said, “This announcement from the DOE demonstrates that Raser Technologies is well positioned to take advantage of government stimulus programs targeted for renewable energy. The funds obtained with the loan guarantee program would enable us to develop our current geothermal resources in southern Utah. It would be a great step forward for the company.”
Raser’s Thermo No. 1 geothermal power plant recently began selling power to Anaheim, California under a long-term power purchase agreement. Raser’s unique power plant design, coupled with state-of-the-art generators similar to those used in its Thermo No. 1 plant, allow Raser to utilize low temperature resources and build power plants substantially faster than typical power plants.
About Raser Technologies
Raser (NYSE: RZ) is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron™ technology developed internally by its Transportation and Industrial segment. Raser’s Transportation & Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding: our beliefs about our ability to meet the requirements of the DOE due diligence process;our beliefs about preliminary drilling results; our beliefs about the potential for geothermal power generation on our leased properties and its qualification for certain federal tax credits; our beliefs about our ability to exploit the available geothermal resources; our beliefs about the expected timing relating to the testing and commissioning of our geothermal power project; our beliefs about local utility’s ability to complete their work in a timely manner; our beliefs about our ability to obtain adequate development funding; our beliefs about our ability to utilize our technology and other available technologies to produce electric power from the available resources; and our beliefs about the geothermal market in general. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to secure necessary permits; the strength of our intellectual property; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 2009, as filed with the Securities and Exchange Commission, and all subsequent filings.
All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Contacts:
Raser Technologies, Inc.
Issa Arnita, 801-765-1200
Investor
Relations
investorrelations@rasertech.com
or
Hayden
IR
Cameron Donahue, 651-653-1854
cameron@haydenir.com