News
Nov 19, 2009Alison Thompson on RenewableEnergyWorld Podcast
Transmission: Geothermal’s Achilles Heel
Click here to listen to the podcast!
Alison Thompson starts speaking at 12:30
by Stephen Lacey, Podcast Editor
Nevada, United States [RenewableEnergyWorld.com]
Now that geothermal is finally on our energy priority list, the industry is seeing a new influx of public and private capital. After more than a decade of almost no activity in the U.S. geothermal sector, we’re finally seeing a lot of new plants being developed. The problem is, many of them may not move forward because of a lack of transmission.
But transmission is not the only issue. In this podcast, we’ll look at how factors like resource evaluation, lack of government support and industry marketing have held back the industry — and how industry professionals are addressing these factors to make sure geothermal becomes a major piece of our global baseload power mix.
Lisa Shevenell, a hydrologist with the Great Basin Center for Geothermal Energy, talks about why the industry is coming out of a dark age of almost no geothermal development. She’ll also tell us about a new tool that makes it easier and less costly to examine potential resources.
Alison Thompson, chair and founder of the Canadian Geothermal Energy Association, discusses the reasons why Canada has no geothermal power plants, despite having numerous public companies in the country. She’ll also talk about the “brain drain” of Canadian talent down to the U.S.
Finally, Erik Swenson, a partner with the international law firm Fulbright and Jaworski, describes the need for a national transmission system for integrating more renewables. He’ll tell us why it’s not as easy as many proponents make it seem.
Nov 17, 2009
Ram Power sees $216 million debt financing from IFC
Nov 17 (Reuters) - Renewable energy company Ram Power Corp (RPG.TO) said the World Bank’s International Finance Corporation (IFC) has proposed to arrange $216 million in debt financing for the company’s 72 megawatt geothermal project in Nicaragua.
Under the non-binding terms of a mandate letter, IFC proposed to lend up to $40 million and arrange for the balance on a syndicated basis, Ram Power said in a statement.
IFC has also indicated that it may consider providing an additional $20 million in mezzanine debt or possible equity to the project, Ram Power said.
Mezzanine debt comes with a fixed interest rate and warrants tied to a company’s equity.
Ram Power expects to complete construction and commissioning of the full 72 MW San Jacinto Tizate facilities by 2011, it said.
To view this article click here.
Nov 16, 2009
Magma Energy reports dramatic growth, new geothermal explorations in Q1
By: THE CANADIAN PRESS
VANCOUVER, B.C. - Magma Energy Corp. (TSX:MXY) says it is gradually acquiring shares in Iceland’s largest private geothermal power company and eventually hopes to become half-owner of the venture.
The investment in HS Orka was one of several initiatives discussed Monday by Magma’s chairman and chief executive Ross Beaty in a conference call to discuss Magma’s fiscal first-quarter results. Despite a loss of nearly US$2.7 million or one cent a share in the three-months ended Sept. 30, Beaty called it a “pretty good quarter” for Magma. During the same period last year, the Vancouver-based thermal energy producer reported a loss of $829,860, also one cent a share.
Beaty said Magma expects to acquire 8.6 per cent of HS Orca stock later this week, about two months later than expected. Magma plans to close the purchase of an additional 32 per cent of the Icelandic company in late November and three per cent more in March, bringing its total holdings to some 43 per cent. Magma has expanded rapidly since its initial public offering in July, including projects in Nevada and Latin America.
“Our Nevada and international exploration efforts are gearing up quickly, and we have already announced a new 140-megawatt geothermal resource discovery at our Maule project in Chile,” he said. “This is a major discovery, but we think it will get much bigger with further exploration.” The company developed seven explorations in Nevada during the period and opened two new projects in Nicaragua just after it ended.
“The real highlight of our quarter, however, was our completion of a successful IPO on July 7th, which raised $88 million net of cost,” Beaty said. “This gives us the financial horsepower to aggressively explore and develop the most promising of our properties for the next couple of years.”
Since Magma went public, geothermal resources have increased from 199-megawatts to 436-megawatts, nearly 150 per cent, Beaty said. “This is a pretty good start on our mission to build a great global geothermal power company by successful exploration, production and acquisition,” he added. Revenues from energy sales were just over $1 million in the quarter, the first three-month period of the energy producer’s 2010 fiscal year, the company reported. Magma generated no operating revenue for the same period a year earlier.
Magma Energy has one operating power generation plant, the Soda Lake operation in Nevada, and an extensive portfolio of exploration properties throughout the western United States and Latin America. “We now hold 161,000 hectares, or just over 400,000 acres, of geothermal rights at 27 properties in five countries,” Beaty said. “But of course its quality not quantity that counts and our big focus in 2010 will be to explore these holdings aggressively…and drop the lowest quality projects to focus on the best.”
Magma shares were up two cents at $1.84 in trading Monday on the Toronto Stock Exchange.
Nov 13, 2009
Dundee Securities Corp. Sponsors Calgary Event
CanGEA is proud to announce that Dundee Securities Corporation will be sponsoring the CanGEA Geothermal Investment Workshop & Networking Reception in Calgary, December 3, 2009.
About Dundee Securities Corporation
Dundee Securities Corporation is a full service investment dealer engaged in wealth management & financial advisory services, retail brokerage, institutional sales & trading, equity research and investment banking. Dundee Securities Corporation is a member of the Investment Dealers Association of Canada and CIPF.
With capital strength, focus and dedication, Dundee Securities delivers the best to our clients. Our retail Investment Advisors, high net worth Portfolio Managers, independently thinking Research team, client-focused Institutional Sales & Trading department, and innovative Corporate Finance professionals provide clients with a complete financial services package and timely, unparalleled client service.
Geothermal Investment Workshop & Networking Reception
Registration has opened (click here to register)
Calgary is the venue for the CanGEA Geothermal Power Investment Workshop and Networking Reception, where geothermal developers, investors, financiers and stakeholders in the geothermal power industry will gather to explore the wealth of opportunity in this emerging renewable energy sector.
As the number of investor prospects in geothermal power continues to broaden, a trusted forum for investor education and networking in the geothermal power industry has been absent. This unique event aims to deliver a one-stop solution through our series of expert-led presentations and the opportunity to network with the biggest names in geothermal power.
As a conference attendee, you will receive:
- A necessary comprehension of the technical elements in geothermal power production, led by CanGEA experts **Including CanGEA’s Geothermal 101 presentation
- An overview of the prominent geothermal power projects in the industry **Presenters include Magma Energy Corp, Sierra Geothermal Power and Borealis GeoPower
- Extensive opportunities to meet and network with leading figures in the global geothermal industry
- Competitive information you will need to realize investment success in the geothermal power industry from The Geothermal Power Investment Panel
- An insider’s look at the Canadian Geothermal Reporting Code, and what it means for the industry and investors
- The Canadian Geothermal Reporting Code has been developed by industry to improve investor confidence in geothermal power. This framework will establish regulated metrics for value in the geothermal power industry, similar to those used by the mining and petroleum industries. Canada is aligned to become a centre of investment for geothermal power, it will become only the second country in the world (after Australia) to offer a trusted, unequivocal standard for geothermal resource reporting.
Who will you meet?
* Geothermal power developers and producers
* Banking and investment firms
* Lawyers and Legal Consultants
* Green investment funds, investors
* Officials from multiple levels of government
* Utilities
* Environmental consultants
* Geothermal energy researchers
* Equipment and technology suppliers
* Alternative energy innovators
* Venture capital and angel investors
Nov 12, 2009
Magma CEO: Iceland Needs Change in Attitude
CEO of Canadian Magma Energy Ross Beaty said during the Capacent Glacier conference at Grand Hotel in Reykjavík yesterday that Icelandic ministers must change their attitude towards foreign investors.
Beaty said he had thought his company was given rather negative coverage last summer because of its investment in HS Energy, Morgunbladid reports.
He explained that Magma considered the investment a long-term project and was planning to develop a large company on a global scale. Their goal is not to steal Iceland’s natural resources, which is what some ministers had claimed.
“It can be difficult to deal with a left-green government, which doesn’t want foreign companies to invest in the country’s natural resources because of ideological reasons,” Beaty said.
He claimed that Magma hadn’t paid a low price for access to Iceland’s natural resources, in fact, some might find it unusually high.
“The best thing about Iceland is great human resources,” Beaty said, adding that he has no doubt Iceland will recover from the depression and Magma is keen on restoring the country’s economy through its investment.
According to a new survey undertaken by Capacent Glacier, both the Icelandic public and the executives of Icelandic companies are positive towards foreign investors, Fréttabladid reports.
The survey concluded that 86 percent of company executives who participated in the poll are in favor of foreign investments and 92 percent believe they are necessary for the economy.
The public is not as keen, yet 70 percent of respondents said they support foreign investments and 81 percent believe they are necessary.
To read this article in its entirety click here.
Nov 12, 2009
Cleantech sector flourishes on Canadian exchanges
OTTAWA (Reuters) - Cleantech and renewable power companies are finding fertile ground in Canada, with year-to-date equity financing deals on TMX Group (X.TO: Quote) exchanges surpassing C$1 billion ($952 million) and more than doubling such financings in all of 2008.
The number of financing deals on the Toronto Stock Exchange and TSX Venture Exchange has also soared, jumping 70 percent to 73 deals versus 43 at the same point in 2008.
There are 123 cleantech listings on the two exchanges, which TMX Group said makes them home to the highest number of such companies in the world. There were 102 such listings at this time last year.
Cleantech is a catch-all term that encompasses technology companies and businesses that include clean energy, environmental, and sustainable products and services.
“Our exchanges are number one in the world for mining and energy, and we are being viewed as the ideal financing markets for companies developing sustainable technologies and renewable power projects,” said Toronto Stock Exchange senior vice-president Ungad Chadda.
The exchange statistics include the October listing of geothermal energy developer Ram Power Corp (RPG.TO: Quote), TMX Group said.
To view this article click here.
Nov 11, 2009
CanGEA Welcomes its Newest Member: The TMX Group Inc.
CanGEA would like to welcome its latest member, the TMX Group Inc. operator of Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV). We are excited to have support from the largest stock exchange in Canada. TSX is the world leader in the mining and oil & gas sectors; with more mining and oil & gas companies listed on the TSX than any other exchange in the world.
Alison Thompson, CanGEA Chair and Founder, commented “CanGEA is happy to welcome CanGEA’s newest member. With geothermal developers and CanGEA
members: Ram Power Inc., Magma Energy Corp. and Sierra Geothermal Power Corp. already listed on the exchange, we look forward to further growth for the geothermal power sector.”
About TMX Group Inc.:
TMX Group owns and operates Toronto Stock Exchange and TSX Venture Exchange. Toronto Stock Exchange, established in 1852, provides senior issuers with efficient access to public equity, liquidity for existing and new investors, and the prestige and market exposure associated with being listed on a world-class market. Serving the public venture capital market, TSX Venture Exchange provides access to growth capital for early stage companies while offering investors a well-regulated market for making venture investments. TSX and TSX-V are home to several Geothermal companies and have a quickly growing Clean Technology and Renewable Power sector.
Nov 10, 2009
Sierra Geothermal Advances Its Paymaster District Play
VANCOUVER, BRITISH COLUMBIA—(Marketwire - Nov. 10, 2009) - Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) today provides an update on its Silver Peak and Alum projects and the exploration activities that form part of its integrated development plan for the Paymaster District geothermal area. The data from these recent, current and near term activities will be integrated with existing datasets to refine a 3D subsurface model to assist in confirmation of targets for production well drilling.
On November 8, 2009, SGP commenced drilling a production assessment-observation well at the Alum project. Well 25-29 is being drilled to a maximum depth of 1,830 meters or 6,000 feet and is targeting multiple zones of high geological interest from 800 to 1,500 meters or 2,620 to 4,920 feet deep. SGP has contracted Ensign Energy Services Inc.‘s Ensign 561 rig, under the supervision of 30-year geothermal drilling veteran Mr. Jerry Hamblin of Subsurface Excellence Inc.
On November 3, 2009, SGP completed a program of ten shallow temperature gradient holes at the Silver Peak project. A total of 1,522 meters or 4,990 feet were drilled including 238 meters or 781 feet of core. The maximum temperature recorded was 88 degrees Celsius or 190 degrees Fahrenheit at a depth of 140 meters or 459 feet. The maximum temperature gradient recorded exceeded 500 degrees Celsius per kilometer or 28 degrees Fahrenheit per 100 feet. Water samples were also collected for geochemical analysis and to establish baseline water quality in the area.
“We are delighted to be able to aggressively pursue the integrated development plan for our Paymaster District after our exploration freeze resulting from the uncertainty created by the 2008-2009 market meltdown. This puts us back on track to become an independent producer of geothermal power by 2012. Particularly encouraging is that the recent temperature gradient drilling results show that the thermal anomaly at Silver Peak is larger and hotter than previous measurements had indicated,” said Gary Thompson, President and CEO. “Our exploration and development program is well funded with nearly US$11 million raised since August 2009 and US$10 million in matching grants recently awarded to us by the US Department of Energy.”
About Sierra Geothermal Power Corp.
Sierra Geothermal Power Corp. is a renewable energy company focused on the exploration and development of clean, sustainable geothermal power. It is based in Vancouver, British Columbia and listed on the TSX Venture Exchange under the symbol SRA. Its portfolio of geothermal projects located in Nevada and California exceeds 365 square kilometers (90,000 acres) and has a combined total estimated capacity of greater than 500 MW. SGP intends to finance development by utilizing a combination of corporate equity, joint venture partnerships and project debt, with the support of US government grants and loan guarantees. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our website at http://www.sierrageopower.com.
To view the article in its entirety click here.
Nov 08, 2009
Ormat Industries Q3 net profit, sales rise
TEL AVIV, Nov 8 (Reuters) - Israeli geothermal energy producer Ormat Industries (ORMT.TA) reported a more than doubling of third-quarter net profit on Sunday, boosted by higher sales of electricity from new power plants abroad.
Quarterly net profit rose to $26.7 million from $11.7 million a year earlier.
Revenue rose to $128.9 million from $102.3 million.
Last week its subsidiary Ormat Technologies Inc (ORA.N) posted a 20.2 percent rise in quarterly revenue to $119.8 million as net profit increased 48.1 percent to $23.4 million.
To view the original article from Reuters, click here.
Nov 06, 2009
U.S. Gives Boost to Canadian Geothermal Companies
The Globe and Mail
by Richard Blackwell
To view the article click here.
The U.S. government has pumped $32-million (U.S.) into Canadian-traded geothermal companies that operate south of the border, a move that highlights the lack of support for the industry in Canada.
A total of $338-million in grants for geothermal exploration and drilling was recently unveiled by the U.S. Department of Energy - part of the Obama administration’s plan to crank up its green energy production. Almost 10 per cent of this will go to firms that trade on the Toronto Stock Exchange, some of which are also based in Canada.
Industry players say this underlines how far behind Canada stands, when it comes to encouraging a domestic geothermal power industry. While there is great potential in parts of Canada for these kind of projects - which use underground heat to generate electricity - there are no geothermal plants in use or being built in the country.
“The reality is there is geothermal potential from a power generation point of view in [Western Canada]” said Greg Reid, an analyst who covers the geothermal sector for Wellington West Capital Markets Inc. “But the regulatory environment and incentives environment is clearly not as good as it is in the U.S.”
Not only are there exploration grants in the United States, but the industry can also draw on low-cost loans and tax incentives, “and large amounts of them,” he said. None of that exists in Canada.
Among the firms that will collect U.S. grants under the new program are Magma Energy Corp. (MXY-T1.800.010.56%) , Nevada Geothermal Power Inc.(NGP-X0.94-0.01-1.05%), and Sierra Geothermal Power Corp. (SRA-X0.29——%), all of Vancouver. They each trade on the main TSX exchange or on the TSX Venture Exchange.
U.S. Geothermal Inc. of Boise, Idaho and Ram Power Corp. of Reno, Nev., which both trade on the TSX, also received grants.
Magma and Sierra each got $10-million, while the others got sums ranging from $3.4-million to $5-million. The money will go to projects in Nevada, Oregon and California.
Alison Thompson, vice-president of corporate relations at Magma, said the industry uses the Toronto market for funding because of its expertise in financing resource firms.
These companies would likely also have projects in Canada, she said, except that the regulatory and support environment has “stymied” any attempts to do projects here.
The only Canadian project on the drawing board is one in Ram Power’s long-term plans, in the South Meager region of British Columbia, about 170 kilometres north of Vancouver.
That situation would change if Canadian geothermal firms got the kind of help available in the United States, especially for risky early-stage exploration and drilling, Ms. Thompson said. Canada has potential for projects in B.C., Alberta, Yukon and the Northwest Territories, where geothermal heat is close to the surface.
Canada’s mining and oil and gas industries already get exploration support, she said, but it is not extended to geothermal companies that could make significant contributions to the Canadian economy.
“Nominal investments now will reap rewards later, because you have 20 or 30 years of clean power [and] you create all these jobs and taxes,” said Ms. Thompson, who is also chair and founder of the Canadian Geothermal Energy Association.
Incentives in the United States are very generous, she noted. Among the current programs is one that returns 30 per cent of the capital costs of building a geothermal power plant. Vancouver’s Nevada Geothermal recently applied for a cash grant of almost $58-million, as it has just finished building a new $180-million plant in Northern Nevada.
Gary Thompson, president of Sierra Geothermal, said Canada is missing the boat. “There is a lot of money being raised in Canada [that is] flowing into the U.S.”
