It is envisioned that the money will go towards funding well fields, infrastructure and development. The site at which the wells will be drilled is relatively close (only 30 km) from the nearest transmission line which will allow the power to be fed into the grid. There is already a 20 year power purchase agreement in place with Nevada Power Company for the 35 MW of power generated by the project which should start to generate power by the end of 2009. At current Nevada Geothermal power has four sites leased and estimates these to hold 150 to 200 MW of potential in geothermal power. The sites are Blue Mountain, Pumpernickel, Black Warrior, all located in Nevada and Crump Geyser in Oregon.
Nevada recently passed aggressive legislation aimed at making geothermal power a cost effective power source in this ever increasing power hungry state. Nevada with its growing population and energy hungry towns of Las Vegas and Reno has searched for alternatives forms of energy and it looks to have found a winner in the form of geothermal energy.
Brian Fairbank, President and Chief Executive Officer of Nevada Geothermal Power was quoted as saying; "We are delighted to have secured the Bridge Loan for the development and pre-construction phase for the Blue Mountain power project with an experienced geothermal investor like the Glitnir Bank. The Bridge Loan will provide liquidity to continue our drilling and development program without interruption prior to having the entire project fully permitted, and perfectly correlates with the construction loan provided by Morgan Stanley. Nevada Geothermal now has solid financial backing to move its flagship project through to production."
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