Recently, Evergreen Clean Energy LLC formed a non-exclusive agreement with Raser Technologies Inc to finance geothermal developments. Financing agreement is expected to support the development of 100 MW of electricity from geothermal power.
Evergreen will provide an estimated of $30 million per project. With a calculated return on investment paid by equity interest which will account for 50 percent of each project funded.
The collaboration between Evergreen and Raser is based on per project agreements where Raser will be responsible for permit and research and Evergreen for the finance. For a project of 20 MW the conditions are as follows. Evergreen will pay $5 million for participation right to Raser and a further $25 million will be supplied to pay for drilling.
The Evergreen will receive a lucrative return on investment. It is composed of an equity interest of around 50 percent and will further be given a 15 percent preferred return on all the capital invested. Furthermore, Evergreen will be offered a warrant allowing them to purchase shares of Raser once funding a new project. The warrant will be determined by the sum of funding provided for each project.
The first funding will properly be sought to finance development in New Mexico, Thermo lighting Dock and Utah. In these areas, the potential power generation is around 250 MW in total.
Raser is expected to expand its supply of energy widely with the collaborative aid supplied by Evergreen.
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