February 18, 2010 (FinancialWire) — Energy technology firm Raser Technologies, Inc. (NYSE: RZ) said that the U.S. Treasury has approved its renewable energy grant application for the company’s Thermo No. 1 geothermal power plant. The grant is worth around $32.99 million.

The grant is provided by the U.S. Treasury Department under the Section 1603 renewable energy grant program created by the American Recovery and Reinvestment Act of 2009.

Raser said it should receive the funds within five business days.

According to Raser, the funds will go to retire debt and obligations relating to the Thermo No. 1 Project. In addition to the grant funds, Raser said it is reaching out to new potential tax equity partners in an effort to capitalize on the remaining estimated $15 to $20 million of tax benefits at the Thermo No. 1 project, such as deductions for accelerated depreciation.

As part of the project restructuring announced in December of 2009, Raser became the sole owner of the Thermo No. 1 project, opening the door for Raser to bring in a new tax-equity partner in the future.

The Section 1603 grant program is offered by the U.S. Treasury to qualified renewable energy projects in lieu of investment tax credits or production tax credits. The grant amount for most geothermal projects is equal to 30% of the authorized capital costs of the project.

Utah-based Raser is focused on geothermal power development and technology licensing. Raser’s Power Systems segment is seeking to develop geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology.

The firm’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s Symetron technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.

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