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Potential C2F Project: Geothermal



  • A geothermal plant developer has drilled and proven some production wells but is unable to raise sufficient equity to cover the costs of continued drilling to reach full capacity.
  • Debt is not available due to uncertainties in costs.


  • Risk barrier – Power Purchase Agreement or fuel sale agreement is insufficient to cover a loan at the discount rate required based on resource assessment
  • Cost barrier – Power price reduced by reducing debt/equity ratio and reducing interest rate on debt

C2F solution

  • Provide a C2F subordinated debt (at below market rates if justified).
  • Use barrier analysis to quantify the amount of subordinated debt needed to cover the default risk

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