PHOENIX, Nov. 24, 2014 /PRNewswire/ -- EnviroMission Limited (ASX:EVM, OTCQX:EVOMY) EnviroMission's U.S. Solar Tower development subsidiary, EnviroMission, Inc., has signed a milestone Memorandum of Understanding (MOU) with the U.S. Department of Energy's Western Area Power Administration (Western).
Western is authorized under the American Recovery and Reinvestment Act of 2009 (Recovery Act) to borrow up to U.S $3.25 billion from the United States Treasury for purposes of constructing, financing, facilitating, planning, operating, maintaining, or studying construction of new or upgraded electric power transmission lines and related facilities with at least one terminus in Western's service territory to deliver or facilitate the delivery of power generated by renewable energy resources constructed or reasonably expected to be constructed after enactment of the Recovery Act.
"Western solicited proposals involving the development of potential transmission projects and EnviroMission submitted a proposal based on the future transmission needs of a Solar Tower within Western's territory," said Roger Davey, EnviroMission, Inc., Executive Chairman.
Western's review of EnviroMission's proposal for a South of Parker Transmission Upgrade Project, found the project that would service EnviroMission's proposed La Paz Solar Tower development and provide regional transmission benefits to other projects, initially meets the statutory prerequisites set out within the Recovery Act.
Under the MOU EnviroMission will provide additional project information to Western's Transmission Infrastructure Program for evaluation to determine the prospects of subsequent agreements for engaging in development work on the transmission line and a loan to support construction of the project.
Before Western can consider a request for financing of a particular project under the Recovery Act it must determine that a project is in the public interest; will not adversely impact system reliability, operations, or other statutory obligations; has a reasonable expectation that transmission proceeds will be adequate to repay principal and interest of a loan from the U.S. Treasury; and has the necessary capability to obtain and deliver generation-related ancillary services.
"Development of transmission infrastructure that will facilitate commercialization of Solar Towers in Western's territory also goes to the heart of the intention of the Recovery Act through the substantial economic benefit expected to flow from the creation of over 1,000 new jobs and the considerable material supply required to construct EnviroMission's large-scale renewable energy power station development," Mr. Davey said.
About EnviroMission's Solar Tower technology
Solar Tower renewable power station technology is a world first concept that uses solar radiation to heat air to drive turbines to reliably generate large-scale, sustainable, emission free electricity directly into the transmission grid.
About Western's Transmission Infrastructure Program
Western Area Power Administration is a power marketing administration within the U.S. Department of Energy that annually markets and transmits more than 25,000 gigawatt hours of clean, renewable power from 56 federally owned, hydroelectric power plants in 15 western and central states. Western's Transmission Infrastructure Program (TIP) has $3.25 billion in borrowing authority to support the development, construction, financing, and operation of transmission-related projects that facilitate the delivery of clean, renewable power with at least one terminus in Western's service territory. Visit Western's Transmission Infrastructure Program website for more information. If you have additional program questions call Western's Public Affairs office at 720-962-7050 or send an email to [email protected].
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SOURCE EnviroMission Limited