Ormat Technologies has decided not to proceed with the Part II of the DOE loan guarantee program application for Wister, CD-4 and Dead Horse Wells geothermal projects, currently under construction in California and Nevada.
The decision was made in coordination with John Hancock Life Insurance Company (US) relative to the pending application for up to $330m in DOE funding.
Ormat has decided to explore commercial financing for the projects in lieu of DOE support.
Under the guidelines of the Financial Institution Partnership Program (FIPP), projects backed by the program must have all the permits necessary for the projects by September 2011.
The decision by Ormat and John Hancock to remove the projects from the application was due to uncertainties in the permitting process and the transaction costs associated with the program, Ormat said.
The Jersey Valley, McGinness Hills and Tuscarora projects, all located in Nevada, are covered under a separate DOE application that is in process.
Ormat expects to secure financing for these three Nevada projects under the FIPP program before the program expires.