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SolarReserve CEO Kevin Smith on the government loan it received for its Nevada project and the jobs it will create.
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All right today is a big day it's actually the government deadline for Department of Energy loans to come out and a big one making about to a company called solar reserve.
We're joined now by Kevin Smith was the CEO of -- reserve and and Kevin -- -- He just received what a seven and I'm 37 million dollar loan for the government to fund a new solar energy project.
Hi this is a touchy subject needless to say considering that we just lost all of our taxpayer investment insulin -- Please tell us what it is you'll be spending the money on what is this project.
Well.
This project a completely different technologies and then the slender activities were and this is a project investment the funds -- go go into the project to build.
A 110 megawatt facility that facility has a 25 year power contract -- NV energy which is -- large utility Nevada.
So essentially our revenue stream for the next 25 years.
Is secured with the utility.
We've got one of the largest international contractors in the world ACS cobra.
That'll be building a facility for us it'll power about 75000.
Homes as opposed to panel technology which is I'm a house here and -- in a commercial facility there is a large scale power facility it's gonna create jobs that are significant -- jobs on site 600 -- construction.
I'm more than 4000 during.
In suppliers across the US we've already placed orders in more than twenty states.
For for products and services to fund that facility.
But -- they get the big difference is that we've got out a 25 year contract to sell a 100% of the electricity generating laughs facility.
And that provides a nice revenue stream for the projects we've got we've brought an additional investment into the project about 250 million dollars of private equity.
I'm and the deal we loan sits on top of all of that as the primary.
Receiver of -- funds from that from the revenue source that we have under our power contract.
Kevin this is Ashley -- what would you say to critics who say that taxpayer money shouldn't be thrown into private sector business like this.
Well -- mean if you look if you look across the US okay there's there's taxpayer money and all kinds of activities you know.
Roads transportation issues aerospace military products you know and energy is is about as critical as it gets.
-- -- with rising energy prices and are things you know it makes sense that to make sure that we're securing energy future.
It's not just renewable energy I mean oil and gas coal nuclear industry.
Get get you know substantially more.
-- government money going into those programs there's an eight point.
Nine billion dollar nuclear facility that has -- Department of Energy loan guarantee as well.
Ten times what we have.
And so you know the the other issues were competing they were competed internationally.
You know the Chinese and Germans the French the Spanish all of those governments recognize that energy and renewable energy is it is not only jobs creator.
It's also.
And energy future and and I think if the US decides.
That we're gonna withdraw from from trying to determine where we go with -- in the energy sector.
It would be a mistake I mean the rest of the where we'll take over right now we're lagging.
And we need -- we need to pick up the pace this is -- project we believe.
If it sure seems like the mistake was that Stephen to and the government.
I don't know it was tasty really I don't know the process but put money in so -- when it didn't seem to have.
All of the backups that you do which is long term contracts.
Kind of I'm hoping is a short thing that's what I'm hearing you say but talk about this molten salt.
Solar technology.
Explain to our viewers how that's going to work and at how realistic it is to eventually be adopted by most of us.
Well that that the technology was was developed in the in the ninety's by rocket -- which is.
That kind of the world's leading rocket engine manufacturer do all the rockets for NASA.
-- and and they develop this technology was a test project done in the ninety's there's been we have some competitors are looking at this as a smaller project in Spain.
But this project really I'm LeapFrog so the reserve into the leading solar thermal technology worldwide.
Ahead of the Spanish ahead of the the Israelis head of the Germans ahead of the Chinese to this is really a critical project for American technology.
You utilize molten salt really to capture the energy molten salt.
At high temperatures operates like water the big differences at high temperatures stays in liquid form and can be stored as opposed to water -- flashes -- steam.
So the technology is relatively complicated but it but it's it's certainly proven.
And we believe this is a great project and really propels American technology its number one in the world on solar thermal technology.
I have we are at a time back Kevin thank you Kevin Smith CEO of I -- -- hello -- reserve.
Just got approval for a 637.
Million dollar loan.
