Raser just announced that is has a new agreement with Evergreen Clean Energy, LLC that will finance the development of up to 100MW of geothermal power. Per the agreement, Evergreen will provide up to $30 million for each project, with the exact amount of financing depending on the project’s scope. Here’s how Evergreen’s funding should break down for a typical $30 million project: $25 million to fund the project, $5 million for participation rights.

In return for providing this financing, Evergreen will own a 50% equity interest in each power project and will receive a 15% preferred return on the capital. The agreement also includes warrants for Evergreen to buy shares of Raser’s stock.

In a press release, Richard Clayton, Raser’s Principal Executive Officer, commented on the deal:

“This is an exceptional agreement for Raser, Evergreen and our customers. The agreement is designed to fund 100% of project drilling costs for projects that meet applicable conditions, which could allow Raser to build multiple power plants without having to raise significant new sums of money for well field development. We are excited to be partnering with a forward-thinking financing source like Evergreen and believe this model will provide tangible financial benefits for both entities.

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