July 20, 2010 
http://www.energyprospects.com/cgi-bin/package_display.pl?packageID=3288

A Salt Lake City nuclear power developer has signed an agreement with a New
York investment firm for $30 million in private equity funding, to be used
toward the development of a 3,000-MW nuclear power project at Green River,
Utah.

Under terms of the agreement Blue Castle Holdings signed with Lead Dog
Capital L.P. at the end of June, Lead Dog has committed to provide up to $30
million in new capital in exchange for newly issued Blue Castle common
stock, according to a June 29 announcement issued by the company.

The financing will occur in multiple tranches over three years, and the
schedule for stock purchases will be established at the sole discretion of
Blue Castle, according to the company.

The agreement gives Blue Castle flexibility by allowing it to choose when it
will raise and deploy capital. The arrangement is particularly well suited
to the development of a nuclear power project, since building permits issued
by the Nuclear Regulatory Commission are good for 20 years; that way, Blue
Castle and the utilities that partner with it to develop the project will be
able to choose the optimum time to start construction, said Blue Castle CEO
Aaron Tilton. 

The financing from the arrangement with LeadDog will supply about 30 percent
of the $100 million it will cost to take the project through the licensing
process with the NRC, Tilton told Energy Prospects West. Another $22 million
is expected to come from utilities involved in the project. 

Blue Castle estimates the project will cost between $13 billion and $16
billion to build, depending on the reactor design chosen by the company.
Tilton said the project may use two 1,500-MW reactors or three 1,000-MW
reactors.

Blue Castle is in the NRC budget cycle to submit its application for an
early site permit in 2011; about 18 months after that, the company plans to
submit its application for a combined construction and operating license.
Tilton estimates the licensing process would conclude around 2015.

The project site in Emery County, Utah, has been rezoned to allow
construction of a nuclear power plant, and the project is supported by the
county and the city of Green River. 

The state of Utah also supports the development of nuclear projects with a
tax incentive, signed into law by Gov. Gary Herbert this spring, which
rebates up to 100 percent of state taxes paid by a nuclear developer for up
to 20 years.

Emery County is already home to the 944-MW coal-fired Huntington Canyon
Power Plant, owned and operated by PacifiCorp; the 1,472-MW coal-fired
Hunter Power Plant, owned by PacifiCorp, Deseret Electric Power Cooperative,
and Utah Associated Municipal Power Systems; and several coal mines.

Blue Castle has acquired rights to 53,000 acre-feet of water per year under
60-year leases and expects to get state regulatory approval for its water
use plan by third quarter 2010.

At this point, Blue Castle is in discussions with over 15 utilities
interested in 4- to 7-percent equity ownership stakes in the project. Blue
Castle "will participate in a long-term equity position during construction
and operation of the project" as a merchant developer, Tilton told
Prospects. 
 

July 20, 2010 
http://www.energyprospects.com/cgi-bin/package_display.pl?packageID=3288

A Salt Lake City nuclear power developer has signed an agreement with a New
York investment firm for $30 million in private equity funding, to be used
toward the development of a 3,000-MW nuclear power project at Green River,
Utah.

Under terms of the agreement Blue Castle Holdings signed with Lead Dog
Capital L.P. at the end of June, Lead Dog has committed to provide up to $30
million in new capital in exchange for newly issued Blue Castle common
stock, according to a June 29 announcement issued by the company.

The financing will occur in multiple tranches over three years, and the
schedule for stock purchases will be established at the sole discretion of
Blue Castle, according to the company.

The agreement gives Blue Castle flexibility by allowing it to choose when it
will raise and deploy capital. The arrangement is particularly well suited
to the development of a nuclear power project, since building permits issued
by the Nuclear Regulatory Commission are good for 20 years; that way, Blue
Castle and the utilities that partner with it to develop the project will be
able to choose the optimum time to start construction, said Blue Castle CEO
Aaron Tilton. 

The financing from the arrangement with LeadDog will supply about 30 percent
of the $100 million it will cost to take the project through the licensing
process with the NRC, Tilton told Energy Prospects West. Another $22 million
is expected to come from utilities involved in the project. 

Blue Castle estimates the project will cost between $13 billion and $16
billion to build, depending on the reactor design chosen by the company.
Tilton said the project may use two 1,500-MW reactors or three 1,000-MW
reactors.

Blue Castle is in the NRC budget cycle to submit its application for an
early site permit in 2011; about 18 months after that, the company plans to
submit its application for a combined construction and operating license.
Tilton estimates the licensing process would conclude around 2015.

The project site in Emery County, Utah, has been rezoned to allow
construction of a nuclear power plant, and the project is supported by the
county and the city of Green River. 

The state of Utah also supports the development of nuclear projects with a
tax incentive, signed into law by Gov. Gary Herbert this spring, which
rebates up to 100 percent of state taxes paid by a nuclear developer for up
to 20 years.

Emery County is already home to the 944-MW coal-fired Huntington Canyon
Power Plant, owned and operated by PacifiCorp; the 1,472-MW coal-fired
Hunter Power Plant, owned by PacifiCorp, Deseret Electric Power Cooperative,
and Utah Associated Municipal Power Systems; and several coal mines.

Blue Castle has acquired rights to 53,000 acre-feet of water per year under
60-year leases and expects to get state regulatory approval for its water
use plan by third quarter 2010.

At this point, Blue Castle is in discussions with over 15 utilities
interested in 4- to 7-percent equity ownership stakes in the project. Blue
Castle "will participate in a long-term equity position during construction
and operation of the project" as a merchant developer, Tilton told
Prospects.