News
Feb 26, 2010CanGEA Announces the Geothermal Reporting Code Investment Seminar and Reception – March 3rd, 2010
CALGARY, ALBERTA (Feb. 26, 2010)—The Canadian Geothermal Energy Association (CanGEA) would like to announce the Geothermal Code Investment Seminar and Reception on March 3rd, 2010 in Toronto, Ontario. The Investment Seminar and Reception will focus on the launch of the Geothermal Code for Public Reporting, which provides a minimum set of requirements for the reporting of Exploration Results, Geothermal Resources and Geothermal Reserves on Canadian stock exchanges. The Geothermal Code, a first for Canada, will be a key factor in increasing investor confidence and interest through the standardization of geothermal reporting.
Geothermal power has been referred to as the “King of Renewables” with consistent base-load power production, low emissions and a small environmental footprint. Geothermal power’s importance in Canada’s energy portfolio, as well as interest from companies raising equity on Canadian exchanges, has continued to grow. Canada’s publicly listed “pure-play” geothermal companies now have a combined market capitalization of over $1 billion on the TSX and TSX-V. With billions of dollars in investment potential, the need for transparent and consistent reporting of geothermal information has never been more significant.
Alison Thompson, CanGEA Chairman and Founder, had this to say about the event, “The introduction of a Geothermal Reporting Code for publicly listed companies is a greatly anticipated milestone in our industry. Geothermal power is an often misunderstood energy resource and a Reporting Code will go a long way to increasing investor confidence in our industry.”
Attendees at the Geothermal Code Investment Seminar will be guided through the development of the Code, will learn Code basics through case study examples from geothermal experts and will understand the Code’s impact on Canadian listed companies from a distinguished producer, financial, and asset evaluator panel. The expert-led presentations will detail the technical and financial implications of the Reporting Code, offering attendees a clear perspective of how the Code will affect businesses in the geothermal community. This seminar is a unique opportunity for investors to sharpen their understanding of the geothermal value chain, and identify the genuine winners in the marketplace. CanGEA will also have the honour of opening the market on the Toronto Stock Exchange (TSX), the morning of the event.
Space is limited at the event; interested participants are encouraged to sign up soon. Sponsorship opportunities are also still available. We’d like thank our marketing sponsor for this event, the CNW Group, as well as ThinkGeoEnergy.
About CanGEA
CanGEA is a national industry association that works on behalf of our members to promote publicly listed companies on the Canadian exchanges as well as to facilitate the responsible and sustainable growth of high temperature geothermal energy in Canada, which, we believe, can provide competitive, emissions free, renewable, base-load energy to Canadians and export markets.
For more information, please contact
The Canadian Geothermal Energy Association
Nicole Robson Marketing and Membership Director
.(JavaScript must be enabled to view this email address)
http://www.cangea.ca
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Feb 25, 2010
Sierra Geothermal Drills Deep at Alum
CanGEA member Sierra Geothermal Power Corp, provides an update on the Alum Project located near the Nevada - California border in Esmeralda County, Nevada.
VANCOUVER, BRITISH COLUMBIA—(Marketwire - Feb. 25, 2010) - Sierra Geothermal Power Corp. (TSX VENTURE:SRA) (“SGP”) today provides an update on the exploration drilling program at its 100% owned Alum project. The Alum project is part of SGP’s Paymaster District geothermal area.
SGP has commenced drilling a second deep observation well at its Alum project. This well, called 26-19, follows last year’s drilling of deep observation well 25-29. The purpose of well 26-19 is to expand our knowledge of the Alum geothermal resource by exploring for temperature and permeability to depths of several thousand feet. Well 26-19 will utilize cutting-edge coiled-tube drilling technology in an effort to make deep drilling faster and more cost-effective. Coiled-tube drilling has found great success in the oil and gas industry but has never been used at a geothermal well.
Well 26-19 is eligible for reimbursement on a 50:50 cost share basis through the U.S. Department of Energy’s (DoE) Geothermal Technologies Program grant which was awarded to SGP in 2009.
SGP has contracted Xtreme Coil Drilling Corp. to drill the well with XTC 200 Rig # 4. The geological information obtained from Well 26-19 will be integrated into SGP’s 3D geologic model for Alum. The primary objective of the well is to test temperature and permeability in the subsurface. A secondary objective is to compare coil-tube drilling rates to conventional and core drilling rates in a geothermal field.
“We are excited to be working with Xtreme to demonstrate coiled-tube drilling and would like to thank the DoE for their support of the project. This well is intended to move the Alum project towards feasibility, potentially allowing us to start production well drilling, the next milestone in the plan to bankable feasibility,” said President and CEO Gary Thompson.
About Alum Project
The Alum geothermal power project is part of SGP’s Paymaster district and located near the Nevada-California border in Esmeralda County, Nevada, 240 kilometres (150 miles) northwest of Las Vegas, and covers 7,198 acres. There is a 55 kV line that runs within a few hundred meters of the lease boundary. GeothermEx’s independent analysis of the Alum heat anomaly estimates a resource capacity of 73-150 megawatts of power with a 20 year plant life. Chemical geothermometry analysis has indicated reservoir temperatures up to 225 degrees Celsius may be present. The maximum recorded bottom-hole temperature is 129 degrees Celsius at a depth of 610 meters. The lands containing the Alum heat anomaly have been unitized by the Bureau of Land Management with SGP the designated unit operator.
About The Paymaster District
SGP recognized the area as a district geothermal opportunity many years ago. The projects within the Paymaster District consist of three prospects: Alum, Silver Peak and Pearl, having a combined probability at the 90% level of generating over 100 megawatts of power. A 100 megawatt geothermal plant provides enough power to supply 80,000 homes.
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 kilometres (90,000 acres) and has a combined total estimated capacity of greater than 500 megawatts. 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-V: SRA) visit our website at http://www.sierrageopower.com.
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Feb 25, 2010
A deeper shade of green
CanGEA member Enbridge is featured in the March Edition of Oilweek Magazine. Chuck Szmurlo, Vice-president of alternative and emerging technology, Enbridge talks with Jim Bentein on the potential of geothermal energy production in Canada.
Source: Oilweek Magazine
Long involved in wind energy, Enbridge is spreading its wings to take in solar and geothermal technologies
by Jim Bentein
Calgary-based pipeline and power giant Enbridge Inc. has already invested heavily in such renewable electricity areas as wind and solar; now it has turned its attention to geothermal energy projects in British Columbia and elsewhere in North America.
“We believe there is meaningful potential for geothermal energy production in Canada,” Chuck Szmurlo, vice-president of alternative and emerging technology with Canada´s largest pipeline company, told Oilweek.
“It´s on our radar screen. Canada is still in its infancy [in terms of naturally occurring geothermal power]. But there is an attractive resource in B.C.”
Szmurlo said Enbridge would likely partner with companies that have been studying the potential of tapping natural geothermal from deeply buried hot water or steam, known as a geothermal reservoir.
“We´ve been exploring various possibilities with people in the industry,” he said. University of British Columbia engineering professor Mory Ghomshei, who has studied the geothermal potential of British Columbia and the Yukon, says there is “immense” potential for power production from what he calls a coastal “ring of fire,” stretching along the Pacific coast.
There are no existing geothermal reservoir projects in Canada, but they are prevalent in other parts of the world.
In Iceland, for instance, about half of the country´s electricity and most of its space heating and hot water requirements are met by geothermal resources.
In the United States, about 4,000 megawatts of power is generated using naturally occurring geothermal sources in California, Nevada, and other western states. Ghomshei has estimated there is the potential for between 3,000 and 6,000 megawatts of natural geothermal power generation in British Columbia.
Enbridge is interested in the utility-grade potential of such sources, rather than in heat pump-sourced geothermal energy, used in smaller residential and commercial applications (such as Drake Landing, a residential development in Okotoks, Alberta, where most of the space heating comes from geothermal sources).
“We´re interested in capturing larger, utility-scale sources,” he said. Enbridge recently joined the Calgary-based Canadian Geothermal Energy Association, which promotes that form of energy.
While the company´s interest in geothermal power may seem out of character, given that its major focus is on the mostly government regulated pipeline business, where risks are minimal, he said the renewable energy sector offers the same kind of predictability.
“What I like about the area is it is consistent with our business model of providing attractive returns with little risk,” he said.
He echoed statements made recently by Patrick Daniel, the company´s chief executive, who said the company will spend about three percent of its income by 2013, up from about one per cent now, on alternative energy projects.
“Over the next five years we expect to deploy at least an additional $1 billion on renewable energy projects,” said Szmurlo.
The company, which transports more than 70 per cent of western Canada´s crude oil and is Canada´s largest gas distributor, with customers in Ontario, Québec, and New Brunswick, believes it can achieve the same kind of “double-digit” returns in renewable energy projects as it has historically in the pipeline and utility sectors, he said.
Szmurlo said Enbridge will continue to invest in wind power projects. It and wholly owned Enbridge Income Fund now have interests in five wind projects that can generate a total of 314 megawatts (enough to provide power to a mid-sized city like Red Deer, Alberta). They include an 11-megawatt wind farm in Saskatchewan; two developments in southern Alberta: the 30-megawatt Chin Chute project and the 30 megawatt Magrath project; its wholly owned 190 megawatt Ontario Wind Power project, located on the shores of Lake Huron; and the recently announced Talbot Wind Energy Project, which will produce 99 megawatts when completed by next year.
All the wind projects produce predictable returns, he said, with the Alberta and Saskatchewan output being sold into respective provincial grids at contracted prices and the Ontario projects contracted with the Ontario Power Authority for 20 years.
While the Ontario contracts are the most attractive, he said the company is interested in expanding it wind power presence throughout western Canada, Ontario, and Québec, as well as into the U.S. Midwest and Texas.
“Our focus is on areas where we have existing energy infrastructure,” he said. “We would never build a wind project in Hawaii, for instance, even though it has a very good wind regime, because we have no other assets there.”
He said, given that Enbridge has pipelines, tank farms, and other assets in many U.S. states and in much of Canada “that gives us a lot of room to play with.”
He said the company, which has now been involved in wind projects for about a decade, has developed an expertise in building its own wind projects and would prefer to invest in its own projects, versus buying existing assets.
The company, which had already begun to alter its somewhat stodgy reputation with its wind power investments, went in an even more radical direction last October, when it announced it would invest in what will be North America´s largest utility-size solar energy project.
Last October, Enbridge said it would spend $100 million to acquire a 100 per cent interest in the Sarnia Solar Project from the world´s largest solar power developer, First Solar Inc., based in Tempe, Arizona. That project is now producing 20 megawatts of solar power.
It followed that announcement in December with word it would work with First Solar to have that company expand the Sarnia project to 80 megawatts. It will spend $300 million on the expansion.
Szmurlo said the Sarnia solar project may be the first of others Enbridge will invest in, in Ontario and elsewhere.
“We´re very impressed with First Solar,” he said. “It´s a partnership that has the potential to grow in the years to come.”
While solar power isn´t economically competitive with wind power at this point-output from the company´s wind projects is profitable at subsidized rates of 11 cents and up per kilowatt-hour-he said the cost of solar power components is declining rapidly.
Solar projects in Ontario are viable because the Ontario government provides an incentive of 42.5 cents per kilowatt-hour, the most generous subsidy in North America.
The Sarnia investment conforms to the firm´s mantra of only investing in renewable energy projects near its existing conventional energy assets, since it owns a tank farm nearby.
The company, which is investing in renewable energy with the goal both of diversifying its income sources and of offsetting the environment impact of its pipeline operations, has a number of other “green power” investments.
These include ownership in the world´s first hybrid fuel cell power plant, which converts unused natural gas pipeline energy into hydrogen (a small plant is located near its Toronto office), and an investment in a company that recovers waste heat from gas turbines at compressor stations and converts it to electricity (it has four such units operating in Saskatchewan, producing five megawatts).
It is also involved in two initiatives in Canada investigating the feasibility of the long-term sequestration of CO2 in deep saline aquifers. It is leading a consortium of 38 energy industry firms in the Alberta Saline Aquifer Project, which aims to identify deep saline aquifers in the province capable of storing CO2, and is involved in a similar initiative in Saskatchewan.
Szmurlo said he´s also excited about a plan, based on research that has been conducted by Enbridge for several years, to build a pipeline from Fort McMurray to central Alberta that would use liquefied CO2 in a slurry to transport waste solids, such as petroleum coke, sulphur, and limestone. Because CO2 works better than water as a delivery mechanism, the waste products from oilsands could be delivered to where they might have more use, while the CO2 would also be shipped south, where it could be used for enhanced oil recovery.
He said the company will be announcing a plan later this spring that would accelerate research into the line, with partners that include many “household names” in the energy industry.
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Feb 24, 2010
Ormat Technologies Reports Record 2009 Year End & Fourth Quarter Results
Annual net income increased to $68.6 million
Annual revenue increased 20.4% to $415.2 million
Q4 2008 and full year 2008 restated
RENO, Nevada, February 24, 2010 – Ormat Technologies, Inc. (NYSE: ORA) today announced results for the fourth quarter and full year ended December 31, 2009. Highlights of the Company performance include.
- Revenues increased 20.4% for the year to $415.2 million and remained consistent with the fourth quarter of 2008.
- Annual net income increased to $68.6 million and fourth quarter net income increased to $16.1 million (in each case, after giving effect to the restatement described below).
- Earnings per share (diluted) increased to $1.51 per share of common stock for the year and to $0.35 per share of common stock in the quarter (in each case, after giving effect to the restatement described below).
- Total generation increased by 14% to 3.4 million MWh during 2009.
- The Product Segment backlog as of today is approximately $90 million. Commenting on the annual results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “Ormat reported record revenues for the year and Product Segment revenue was exceptionally strong during 2009. While we do not expect revenues and corresponding margins in the Product Segment to continue at this level in 2010, the improving global economy combined with funding and regulatory benefits in the United States should contribute to our future revenues in this segment.
We had success in improving the performance of our existing power plants. Generation in our Electricity Segment increased year-over-year by 14% from improved performance of existing power plants and new power plants that came on-line in 2009. Revenue for the segment was stable even when taking into account that the Puna power plant experienced lower availability due to maintenance related issues.
We are in varying stages of exploration and development on land where we have been acquiring rights to use the geothermal resource over the past few years. Results from several sites are encouraging and should yield several commercial projects over the next few years. Closing of the purchase of the Hot Sulphur Springs (“HSS”) project is expected by the end of the first quarter 2010. This acquisition includes a project in an advanced stage of development and is expected to come online in 2012 and sell its output under a long-term PPA that we recently signed with NV Energy.”
2008 Restatement
Through the third quarter of 2009, we accounted for exploration and development costs using an accounting method that is analogous to the full cost method used in the oil and gas industry. Under that method, we capitalized costs incurred in connection with the exploration and development of geothermal resources on an “area-of-interest” basis. Each area of interest included a number of potential projects in the state of Nevada that were planned to be operated together with the same operation and maintenance team. Impairment tests were performed on an area-of-interest basis rather than at a single site. Under this methodology, costs associated with projects that we have determined are not economically feasible remained capitalized as long as the area-of-interest was not subject to impairment.
Following a periodic review performed by the Securities and Exchange Commission (“SEC”) Staff, we concluded that this accounting treatment was inappropriate in certain respects. Accordingly, on February 23, 2010, our Audit Committee and Board of Directors, based on management recommendations, concluded that our financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2008 require restatement and should no longer be relied upon.
The impact of the restatement is a decrease of approximately $6.2 million in net income (or $0.14 per share) during the year end and the fourth quarter ended December 31, 2008. This decrease represents a reduction of 12.6% from our originally reported net income of $49.5 million in 2008 and a reduction of 53.6% from our originally reported net income of $11.6 million in the fourth quarter of 2008. The Company is filing a Report on Form 8-K and intends to effect the above mentioned restatement in its annual report on Form 10-K for the year ended December 31, 2009. The Company also plans to revise its financial statements as of and for the three and nine months ended September 30, 2009 to reduce net income by approximately $1.5 million (or $0.03 per share). In connection with the filing of its Annual Report on Form 10-K for the year ended December 31, 2009, the Company will revise the third quarter unaudited financial information included in the notes to the financial statements to reflect the expensing of such costs in that interim period.
Annual Results
For the year ended December 31, 2009, total revenues were $415.2 million, an increase of 20.4% from $344.8 million for the year ended December 31, 2008, consisting of a 72.2% increase in Product Segment revenues and a 1.4% increase in Electricity Segment revenues.
Net income for the year ended December 31, 2009 was $68.6 million, or $1.51 per share of common stock (diluted), compared to $43.3 million, or $0.98 per share of common stock (diluted), for the year ended December 31, 2008 (as restated), which represents an increase of 58.4% in net income. The increase in net income is primarily attributable to our Product Segment and to a $13.3 million gain from the extinguishment of a liability associated with the sale of equity interests in OPC LLC, as a result of our acquisition of Class B membership units from Lehman Brothers.
Electricity revenues for the year ended December 31, 2009 were $255.9 million, an increase of 1.4% from $252.3 million for the year ended December 31, 2008. Revenues in our Electricity Segment in the year ended December 31, 2009 were impacted by a decline in the average revenue rate from $86 to $76 per MWh due to the effect of lower oil prices on the Puna power plant’s energy rates, as well as a decline in production due to the enhancement and repair of the geothermal well field which we are undertaking to increase availability at the plant.
Revenues from the Product Segment for the year ended December 31, 2009 were $159.4 million, compared to $92.6 million for the year ended December 31, 2008, an increase of 72.2%. The increase in product sales was primarily attributable to engineering, procurement and construction (EPC) contracts for the construction of three large binary geothermal projects in Nevada, New Zealand and Costa Rica.
For the year ended December 31, 2009, the Company’s gross margin was 29.5%, compared to 29.6% for the year ended December 31, 2008. Operating income for the year ended December 31, 2009 was $68.8 million, compared to $50.8 million for the year ended December 31, 2008 (as restated), an increase of 35.4%. The increase in operating income is primarily attributable to an increase in revenues and gross margin of our Product Segment.
Adjusted EBITDA for the year ended December 31, 2009 increased to $167.0 million compared to $121.9 million for the year ended December 31, 2008 (as restated). Adjusted EBITDA includes consolidated EBITDA and the Company’s share in the interest, taxes, depreciation and amortization related to the Company’s unconsolidated 50% interest in the Mammoth complex in California. As further described in “Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information” below, we changed the method for calculating EBITDA and adjusted EBITDA beginning in the third quarter of 2009.
Cash and cash equivalents as of December 31, 2009 increased to $46.3 million from $34.4 million as of December 31, 2008. In addition, as of December 31, 2009, we have available committed lines of credit with commercial banks aggregating $362.5 million, of which $175.0 million is unused.
On February 23, 2010, Ormat’s Board of Directors approved the payment of a quarterly cash dividend of $0.12 per share pursuant to the Company’s dividend policy, which targets an annual payout ratio of at least 20% of the Company’s net income, subject to Board approval. The dividend will be paid on March 25, 2010, to shareholders of record as of the close of business on March 16, 2010. The Company expects to pay a dividend of $0.05 per share in the next three quarters.
Commenting on the outlook for 2010, Ms. Bronicki said, “We expect our 2010 Electricity Segment revenues to be between $275 million and $285 million. We also expect an additional $9 million of revenues from our share of electricity revenue generated by a subsidiary, which is accounted for under the equity method. With regard to our Product Segment, we expect that our 2010 revenues will be between $75 million and $85 million.”
Fourth Quarter Results
For the fourth quarter of 2009, total revenues were $95.3 million, consistent with the fourth quarter of 2008. Net income for the quarter was $16.1 million, or $0.35 per share of common stock (diluted), compared to $5.4 million, or $0.12 per share of common stock (basic and diluted) for the same quarter last year (as restated).
Revenues attributable to our Electricity Segment for the fourth quarter of 2009 were $63.9 million, an increase of 2.9%, compared to $62.1 million for the same quarter last year. Product Segment revenues for the fourth quarter of 2009 were $31.4 million, a decrease of 6.1%, compared to $33.4 million for the same quarter last year.
Adjusted EBITDA for the fourth quarter of 2009 increased to $41.8 million compared to $20.1 million in the same quarter last year (as restated). Adjusted EBITDA includes consolidated EBITDA and the Company’s share in the interest, taxes, depreciation and amortization related to the Company’s unconsolidated 50% interest in the Mammoth complex in California. As further described in “Reconciliation of EBITDA and Adjusted EBITDA and Additional Cash Flows Information” below, we changed the method for calculating EBITDA and adjusted EBITDA beginning in the third quarter of 2009.
Conference Call Details
Ormat will host a conference call to discuss its financial results and other matters discussed in this press release from 10:00 a.m. to 12:00 p.m. U.S. EST today, February 24, 2010. The call will be available as a live, listen-only webcast at http://www.ormat.com. During the webcast, management will refer to slides that will be posted on the web site. The slides and accompanying webcast can be accessed through the Event Calendar in the Investor Relations section of Ormat’s website.
A 30-day archive of the webcast will be available approximately 2 hours after the conclusion of the live call. A replay will be available from 1:00 pm EST on February 24, 2010 through 11:59 p.m. EST, March 3, 2010. Please call: (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and enter the code 53390852.
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 75 U.S. patents. Ormat has built over approximately 1,200 MW of plants half for its own account and half as supplies to utilities and developers. Ormat’s current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Heber, Mammoth, Ormesa, Puna, Steamboat, North Brawley, OREG 1, OREG 2 and Peetz; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III and in Nicaragua - Momotombo.
Ormat’s Safe Harbor Statement
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to Ormat’s plans, objectives and expectations for future operations and are based upon its management’s current estimates and projections of future results or trends. Actual future results may differ materially from those projected as a result of certain risks and uncertainties. For a discussion of such risks and uncertainties, see “Risk Factors” as described in Ormat Technologies, Inc.‘s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 2, 2009.
These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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Feb 24, 2010
Nevada Geothermal Power Provides Corporate Update:Crump Geyser & Pumpernickel Valley Projects
Vancouver, B.C. (February 24, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) today provided an update on its geothermal power projects—Crump Geyser and Pumpernickel Valley. The Crump Geyser and Pumpernickel Valley Geothermal Projects are ready for development drilling in 2010. NGP plans to maintain a schedule such that new power plants can be constructed and placed in service by the end of 2013 or within the time required to qualify for generous federal tax grants available under the American Recovery and Reinvestment Act (ARRA).
Crump Geyser:
Ongoing geothermal resource evaluation and characterization of the Crump Geyser property has led to the selection of initial production test well targets. Three development wells are planned in 2010 along with other work.
Within the project area, a prominent, active geothermal system is situated along the range front fault zone and extending eastward into the basin. A geothermal system model has been developed from:
- the distribution and character of extensive hot springs along the west margin of the Warner Valley Rift
- extensive geological and structural mapping
- fluid geochemistry and geothermometry
- airborne and ground magnetic studies, gravity surveys and electrical resistivity mapping
The reservoir model considers that the reservoir configuration is controlled by the predominant range front fault zone, cross cutting NW transfer faults, and permeable, layered volcanic formations underlying the Warner Valley.
An airborne magnetic survey, jointly funded by NGP and the US Department of Energy (DOE) will begin this week, to be followed with a seismic reflection survey, supplemental ground magnetic surveys, and precision gravity surveys. These data will provide an unprecedented level of structural, thermal, and geochemical detail of the reservoir, which will enhance targeting precision, and accelerate future drilling and development operations at the Crump Geyser Geothermal Project.
NGP plans further work under a separate cost-shared drilling program with the DOE which includes exploration drilling outward from the core area around Crump Geyser, that will expand the understanding of the reservoir configuration and guide future drilling. Eight widely spaced, thermal gradient holes will be drilled in the first half of this year, followed closely by two deeper slim-holes designed to penetrate and test the reservoir. Thermal gradient well permit applications have been filed and are pending review with the Oregon State Department of Geology and Mineral Industries (DOGAMI).
Pumpernickel Valley:
Exploration at the Pumpernickel Valley Geothermal Project has identified production test well targets associated with the Pumpernickel Fault and several parallel piedmont faults immediately east of Pumpernickel Fault indicated by seismic surveys along the west side of Pumpernickel Valley.
Extensive exploration work has been completed in the period between 2004 and 2010. Thermal gradient drilling, fluid geochemistry, extensive gravity, resistivity and seismic reflection surveys highlight multiple areas of interest within a potentially productive hydrothermal system. Geochemistry of hot spring and geothermal fluids recovered in wells predicts 338ºF (170ºC) reservoir source fluids migrating up from great depths along multiple, sub-parallel, extensional faults having significant lateral extent north and south on the lease holdings.
Three deep development wells are planned, all on private leases within NGP’s 5760-acre (9 square mile) lease hold. A drilling permit has been obtained for the drilling of a 7-inch diameter development well that is planned to start the second quarter of 2010.
About Nevada Geothermal Power Inc.
Nevada Geothermal Power Inc. is an emerging renewable energy producer and developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources, in the United States. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada, and Crump Geyser, Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of over 200 MW from the current leaseholds.
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Feb 24, 2010
Green jobs if Canada renews incentives for renewable power
In the Renewable Energy Focus.com article “Green Jobs if Canada Renews Incentives for Renewable Power” it is suggested that developing Canada’s Geothermal resources will create 8000 new jobs in manufacturing, installation and maintenance, leveraging C$22bn of private sector investment; C$24m in annual lease payments to rural landowners across Canada, and opportunities for Canadians to invest in the development of clean power projects.
From Renewable Energy Focus.com:
24 February 2010
A coalition of environmental groups says Canada could create at least 8000 jobs by if the Federal Government renews incentives for renewable energy.
The Green Budget Coalition includes 21 environmental and conservation groups, and it proposes detailed recommendations before every Federal budget. This year, its three priorities are to re-invest in renewable energy, to invest in freshwater, and to protect ecosystems and biodiversity in the face of climate change.
“2010 is an important time for the government of Canada to increase its support for renewable power, to enable Canada to meet its target of 90% non-emitting electricity by 2020, and to create new economic development opportunities while keeping pace with major growth in the sector both in the USA and overseas,” it explains.
“While renewable energy includes electricity, heat and fuels, this fiscal year is an important time to focus on renewable electricity in order to be prepared for the necessary replacement of many of Canada’s power plants that are reaching the end of their working lives and for potential increased demand from electric and plug-in hybrid cars, while reducing the impact and emissions from the current portfolio of power stations.”
The Federal Government should replace the fully-allocated ecoENERGY for Renewable Power programme with a capital grant programme that includes specific set-asides for northern and remote communities, and establish Green Energy Bonds as a mechanism to ease access to capital and reduce borrowing costs for renewable energy developers, while enabling individual Canadians to directly support the development of renewable electricity.
Use Canada’s skills in oil drilling to explore geothermal
It also wants Government to unlock Canada’s potential for geothermal electricity, by developing a national geothermal data and classification system to assess, quantify and characterize geothermal resources.
The average annual cost to boost funding for renewable power to incent 8 GW of new capacity by 2014 would cost C$450 million over four years, it notes. Creation of a C$5 billion bond fund would cost C$100m over 10 years while an assessment of geothermal resources could cost C$5m.
The investment required would be C$551m per year (average) for four years, and C$100m a year for the subsequent 6 years. The benefits would include 8000 new jobs in manufacturing, installation and maintenance, leveraging C$22bn of private sector investment; C$24m in annual lease payments to rural landowners across Canada, and opportunities for Canadians to invest in the development of clean power projects.
Energy benefits to Canada would include creation of a stable cost energy supply, diversifying the energy supply mix, and providing 5 GW of geothermal power capacity by 2015.
Needed for sustainable energy future
“Immediate investments in renewable energy are part of a longer-term transition towards a sustainable and competitive energy future,” the document explains. “Future investments in clean energy will be needed in renewable heat, transportation, energy efficiency as well as integrated community design, without which Canada will become uncompetitive in the global clean energy market both for production and manufacturing.
“By 2015, all new power plants in Canada should be non-emitting, and overall at least 10% of Canada’s power supply should come from low-impact renewable sources,” it adds.
In 2008, global investment in new renewable energy outpaced investments in nuclear, natural gas and coal electricity combined, attracting US$148bn of investment around the world. The lowest global growth rate for wind power in the past decade has been 21% and, “given the significant investments in renewable energy and energy efficiency in global stimulus packages, this industry is expected to continue to grow.”
Canada could become global leader in renewable energy
“Given its abundant renewable energy resources, Canada has the potential to become a global leader in renewable energy,” the report adds. Although the Federal incentive for green power has been successful in assisting development of new capacity, “Canada has the ability and the need to go much further.
“On a per-capita basis, the American Recovery & Reinvestment Act of 2009 invested almost 14 times as much in renewable energy as Canada’s 2009 budget,” it adds. “Canada urgently needs to make significant investments in renewable energy to become an attractive market and to prevent investment from being attracted elsewhere, particularly to the United States.”
“Realistic minimum national renewable energy goals are 10% of Canadian demand by 2015 (19 GW) and 20% by 2020 (40 GW), it concludes. “Continued federal support for renewable power is crucial to ensure Canada becomes a leading player in the rapidly expanding global marketplace for clean, renewable power.”
Green Budget Coalition
Members of the Coalition include Canadian Environmental Law Association, Canadian Parks & Wilderness Society, David Suzuki Foundation, Ducks Unlimited, Environmental Defence, Friends of the Earth, Greenpeace, Pollution Probe, Sierra Club and WWF, among others.
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Feb 24, 2010
Faulkner 1 Power Plant Successfully Restarted
Vancouver, B.C. (February 24, 2010), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) is pleased to report that its Faulkner 1 power plant was successfully restarted yesterday. A temporary solution has enabled two of the three generators to be restarted at reduced output levels. Engineering considerations surrounding the interim repair plan has limited start-up output to 13MW (net). The permanent repair plan is on schedule and the plant is expected to be fully operational again by early March.
Drilling Update
The company has completed drilling Production Well 91-15 and a slotted liner has been installed to 8315 ft. The company is currently testing the well to determine output levels. Pipeline construction, electric power hook-up and pump installation for Well 91-15 is expected to take several months to complete.
The company has completed the pipeline connecting new Injection Well 55-15 to the power plant which will enable increased plant output upon full plant operations. Injection Well 58-11 is expected to be connected and in service in several weeks.
It is expected that the recently completed Wells 91-15, 55-15 and 58-11 will enable the Faulkner 1 plant to achieve output levels of approximately 45 MW (net) when all three are connected. Funding for this work is already in hand.
The company will also drill three additional injection wells using existing budgeted funds under its expansion drilling program to more widely distribute spent brine injection sites and to optimize geothermal reservoir management over the long term.
About Nevada Geothermal Power Inc.
Nevada Geothermal Power Inc. is an emerging renewable energy producer and developer focused on producing clean, efficient and sustainable geothermal electric power from high temperature geothermal resources, in the United States. NGP currently owns a 100% leasehold interest in four properties: Blue Mountain, Pumpernickel, Black Warrior, all of which are ideally situated in Nevada, and Crump Geyser, Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of over 200 MW from the current leaseholds.
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Feb 19, 2010
Green values, green business
CanGEA member Sierra Geothermal Power Corp., is featured in the Investment Executive article “Green values, green business”. In this article Sierra’s President and CEO Gary Thompson comments on what led him to create Sierra Geothermal.
There’s a growing consensus that environmental goals will drive future profits
Friday, February 19, 2010
By Joanne Sommers
Andrew Heintzman comes across as a typical financial entrepreneur, with an avid interest in economic and political trends, an eye for detail and a lot of drive.
But he is unlike his peers in the investing field in one significant way. Based on a personal commitment to environmental values, the investments in his firm’s portfolios are restricted to companies that are developing environmental goods and services. Assets under management at the company, Toronto-based, Investeco Capital Corp. remain modest at about $45 million, but Heintzman believes the time has come for green companies.
Referring to more than a decade of personal reflection about environmental change and how it can be accelerated, Heintzman says: “I wanted to focus on the intersection of ecology and commerce. I felt it was going to be a great business to be in because the problems are so significant that we really need new companies.”
Like Heintzman, who also volunteers his time to environmental non-profits, many financial advisors are making environmental concerns a priority. While some pursue their goals through business ventures, many more donate their time, energy and skills to green causes. And more and more often, it seems, the private passions that have driven the environmental movement for decades are now spilling over into mainstream business ventures.
Heintzman, for instance, has managed to translate his personal convictions into a profitable investment business. But it didn’t happen overnight. Heintzman found himself looking for new opportunities in the late 1990s, after Shift, the culture and technology magazine he co-founded with Evan Solomon in 1991, was sold. He linked up with Michael de Pencier, his mentor and a long-time magazine founder and publisher who sold his own publishing company in 2002. De Pencier also has a wide green streak, and has been a past chairman of the World Wildlife Fund Canada. “Neither of us had been in financial services but we were entrepreneurs enough to think that we could figure out a way to put it together,” Heintzman recalls.
When they surveyed the investing landscape, the two decided a new approach was needed. “We saw the funds that were calling themselves ‘green’ but, for the most part, held banks and resources companies,” Heintzman says. “They were using a corporate social responsibility approach, looking for companies with environmental concerns.”
Heintzman and de Pencier thought they saw a better way — a sectoral approach that involves looking at the environment as an accumulation of different sectors. In 2003, Investeco was born. It now consists of two businesses: Investeco Capital Corp., a private-equity firm, invests in private Canadian green companies in sectors such as agriculture, solar and biofuels; a fund created by subsidiary Investeco Financial Corp. invests in publicly listed securities with mostly international holdings in Europe and the U.S.; about 20% of its investments are Canadian. Returns for those investments were 27% for the 12 months ended Jan. 31, 2010, outpacing the MSCI all country world index’s gain of 18.3% for the same period.
Heintzman also volunteers several hours a month at non-profits with green objectives. One, Sustainable Prosperity, has built a network of high-profile Canadians from a wide range of sectors and across the political spectrum. (The steering committee includes Preston Manning.) Sustainable Prosperity is dedicated to influencing public- and private-sector policies that affect the environment. Says Heintzman: “A lot of this comes back to public awareness. The more people engage in these issues, the more accepting they will be of the kinds of solutions that are required.”
Heintzman is one of a small but growing group of Canadian entrepreneurs who are working to translate personal convictions into a new business credo, one founded on the idea that green products and services are as potentially profitable — if not more so — than conventional business models. Gary Thompson is another. A Canadian geologist with extensive experience in the oil and gas sector, Thompson began researching the energy market in the 1980s and soon realized that North America was heavily reliant on coal for electricity generation. “I thought, ‘There has to be a better way’,” he recalls.
That led Thompson to create Sierra Geothermal Power Corp., a Vancouver-based company that is developing geothermal power, an endless source of clean energy that taps the heat of Earth’s core. The company’s portfolio of geothermal projects in Nevada and California now has a combined total estimated capacity of more than 500 megawatts.
Thompson and Heintzman, whose professional lives are an outgrowth of their personal commitment to the environment, embody the quality most essential for success in a green entrepreneur: passion. “For green entrepreneurs, passion is key,” says Karel Samsom, a specialist in environmental and sustainable entrepreneurship in Burlington, Vt., and author of Spirit of Entrepreneurship. “Entrepreneurs are much closer to their own values than people involved in big business. Those imbued with this kind of spirit have the imagination to rebuild the value chain and inspire their customers in the process.”
That’s a thought that seems to inspire financial advisors and others in the financial services sector when it comes to helping the planet. More and more often, working for the environment is not something these new-style environmentalists get to only after the lights at the office are turned off. The conviction that motivates them to spend their own time working to slow climate change, preserve habitats or reduce the wasteful use of resources is something that runs through their working lives as well.
Indeed, the line between doing good and doing well is starting to melt away. The largest clean-energy/technology companies traded on the Toronto Stock Exchange dramatically outperformed the overall equities markets in 2009, according to Hoggan & Associates, a Vancouver-based communications firm that specializes in the CE/T sector.
The Hoggan 20-10 Clean Company List shows that the average value gain of the 20 largest CE/T companies traded on the TSX was 75% in 2009, compared with an average gain of 31% for the TSX composite index.The average value gain of the 10 largest CE/T companies traded on the TSX Venture Exchange was 161%, compared with a 91% average gain for the TSXV composite index.
The best of these CE/T companies have received investor support because they demonstrate increasing operating revenues from renewable energy projects or from sales of technology, says Hoggan & Associates executive vice president Shafiq Jamal: “Investors are not interested in pie-in-the-sky ideas. They are interested in companies that can fill the huge need for commercial alternatives to fossil fuels and energy waste.”
It also helps to have “first mover’s” advantage, such as that enjoyed by LGC Skyrota Wind Energy. This Vancouver-based firm, a leader in the development and maintenance of clean-energy wind turbines, bases its operations in Northern Ireland, where it is the only company to offer turbine gearbox refurbishment services, says Skyrota CEO Thomas Braun: “We have a fast turnaround time, a competitive price, and we can reproduce any gear that has worn out or broken.”
Skyrota’s market cap is $5 million. The firm had revenue of about $3 million for the year ended Sept. 30, 2009, and projects an increase of about 50% for 2010.
Companies such as Sierra Geothermal and Skyrota aren’t just growing on the basis of individual initiative. Sweeping new legislation emerging in several countries, including the U.S., China and many European states, is also driving the shift; globally, more than 250 climate-change regulations have been enacted since mid-2008. In Canada, Ontario has launched the most comprehensive and generous set of feed-in tariffs in North America, which guarantee fixed, above-market prices for 20 years for sellers of electricity produced from the sun, wind, water and biomass.
When it comes to greening the environment, the personal is becoming far more than the political. It’s also translating into critical new boosts for business—— and the global economy. IE
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Feb 18, 2010
Sierra Geothermal Appoints Two New Directors
VANCOUVER, BRITISH COLUMBIA—(Marketwire - Feb. 18, 2010)
Sierra Geothermal Power Corp. (TSX VENTURE:SRA) (“SGP”) today announced the appointment of Michael Atkinson and Daryl S. Clark to its Board of Directors. As previously disclosed on January 26, 2010, the Board decided to increase the number of its Directors from six to eight and agreed to fill these newly created vacancies by appointing one nominee from each of Exploration Capital and Skyberry Holdings. Mr. Atkinson is Exploration Capital’s representative and Mr. Clark is Skyberry Holdings’ representative.
Mr. Atkinson currently acts as a Director of Kobex Minerals Inc., and is President and Director of Canadian Phoenix Resources Corp. and Petra Petroleum Inc. He is a self-employed business consultant assisting junior companies in business development and corporate finance. Mr. Atkinson has over 15 years of demonstrated success in finance, sales, management & corporate development and a proven record of dependability and strong business acumen. Until June 2008, he was the Vice President of Quest Capital Corp. where he oversaw bridge lending activities and helped grow Quest’s market capitalization from $30M to over $450M in less than 5 years. Mr. Atkinson’s education includes a Bachelor of Arts, Administrative and Commercial Studies.
Mr. Clark currently acts as the Vice President and CFO and Director of South Asia Energy Management Systems, a Director of Ram Power Corp. and as a Director of Canadian Phoenix Resources Corporation. Mr. Clark formerly served as Vice President and CFO of Peachtree Settlement Funding. Mr. Clark has a long history of corporate finance and management within large and small companies. Prior to joining Peachtree, he was CFO for META Security Group. Mr. Clark has also held key leadership positions with DirecTV and Sensormatic Electronics. Mr. Clark has an MBA from the University of Miami and a Bachelor’s degree in chemical engineering from the University of Florida.
“We are pleased to add two quality individuals representing two of our largest shareholders to our Board of Directors. I believe their experience in corporate finance and development will strengthen our Board,” said Gary R. Thompson, President and CEO of Sierra Geothermal Power.
In addition to becoming an independent director of SGP, Michael Atkinson has also been appointed to the special committee of independent directors to consider and evaluate strategic alternatives for SGP, and make recommendations thereon to the Board.
The appointments of Mr. Atkinson and Mr. Clark to the board of Directors are subject to approval by the TSX Venture Exchange.
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 kilometres (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-V: SRA) visit our website at http://www.sierrageopower.com.
On behalf of the Board of Directors
“Gary Thompson”
Gary Thompson, P.Geo
President, Chief Executive Officer and Director
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Feb 17, 2010
Ormat Technologies Signs Letter of Intent with KPLC to Increase Capacity of the Olkaria III
Reno, Nevada, February 17, 2010 - Ormat Technologies (NYSE: ORA), announced today that its project subsidiary has signed a letter of intent with the off-taker, Kenya Power & Lighting Co. Ltd (“KPLC”), for further expansion of its Olkaria III power plant by up to 52 MW (from 48 MW to up to 100MW) within the framework of the existing power purchase agreement (“PPA”). The expansion is to be developed in two phases. Phase I comprising of 36 MW within 3.5 years from finalizing the amendment to the existing PPA with an option for phase II comprising of 16 MW within 4.5 years from commercial operation of phase I. The amendment to the existing PPA is subject to applicable governmental approvals and the consent of the lenders that provided the financing to the existing power plant.
Dita Bronicki, Chief Executive Officer of Ormat Technologies said, “We are excited about the opportunity to leverage the success of the existing power plant and are looking forward to working with KPLC on this project. We expect that contractual documents on the amendment to the PPA will be completed in the near future. Kenya is a proven and significant resource for geothermal energy, and it is our belief that the proposed expansion will provide Kenya with much needed renewable, dependable and cost-effective electricity.”
The existing 48MW Olkaria III plant is located in Naivasha, Kenya and is comprised of two phases. The first phase of approximately 13 MW commenced commercial operations in August 2000 and the second phase of approximately 35 MW commenced operation in January 2009. The development and construction of the existing plant was funded by the Company’s own equity and upon commercial operation of the second phase, the Company has refinanced its investment through senior secured project finance loan from a group of European Development Finance Institutions arranged by Deutsche Investitions- und Entwicklungsgesellschaft mbH (“DEG”).
About Ormat Technologies
Ormat Technologies, Inc. is the only vertically-integrated company primarily engaged in the geothermal and recovered energy power business. The Company designs, develops, owns and operates geothermal and recovered energy-based power plants around the world. Additionally, the Company designs, manufactures and sells geothermal and recovered energy power units and other power-generating equipment, and provides related services. The Company has more than four decades of experience in the development of environmentally-sound power, primarily in geothermal and recovered-energy generation. Ormat products and systems are covered by 75 U.S. patents. Ormat has built over approximately 1,200 MW of plants half for its own account and half as supplies to utilities and developers. Ormat current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Heber, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2 and Peetz; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; in Nicaragua - Momotombo
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