Free Energy Power Corporation (FEPC) has secured a direct loan of $1.4m with the Agricultural Financial Services Corporation in conjunction with the construction of the electricity generation plant in Alberta, Canada.
Proceeds of the loan will be used to construct a 1000KW electricity generation plant and an oil and gas production facility in Swan Hills.
Total capital cost of the project is expected to be $5.5m.
Previously Free Energy has received $2.6m grant from the state government of Alberta.
The remaining funds of about $1.5m will be generated through a combination of project financing directly into FEPC and a proposed equity issuance through the parent company, Free Energy.