News
Jul 04, 2011The Growing Promise And Potential Of Geothermal Energy in B.C.
In an article by Helijet In Flight Magazine, CanGEA chair Ms. Alison Thompson and Craig Dunn of Borealis Geopower give their view on the growing promise and potential of geothermal power in British Columbia.
The full article can be read here
Jun 27, 2011
Craig Dunn of Borealis Geopower Highlights Geothermal Potential
Craig Dunn, the chief geologist of Borealis GeoPower, was recently mentioned in an online article from Scientific American. The article, titled “Stop Drilling for Oil (and Coal), Start Drilling for Heat,” was published on June 20, 2011. It cites comments recently made by Craig at the Equinox Summit held at the University of Waterloo’s Perimeter Institute where he introduced his energy superhero: geothermal, in a plenary discussion on emerging green, electricity-producing technologies and the challenges they face.
Jun 27, 2011
GSC releases Canadian Geothermal Potential Report
The Geological Survey of Canada and a team of leading scientists in the field of geothermal energy have released a report detailing the “Geothermal Energy Resource Potential in Canada”.
Some of their findings include:
- Canada has enormous geothermal energy resources that could supply the country with a renewable and clean source of power.
- Canada’s in-place geothermal power exceeds one million times Canada’s current electrical consumption.
- The high capacity factor of geothermal power makes it particularly attractive as a renewable resource.
- Remote northern communities could be the first to benefit from geothermal development in Canada.
The 322 page document can be accessed and downloaded from the GSC website
Special thanks to the authors: Grasby, S E; Allen, D M; Chen, Z; Ferguson, G; Jessop, A; Kelman, M; Ko, M; Majorowicz, J; Moore, M; Raymond, J; Therrien, R. Geological Survey of Canada,
Jun 23, 2011
Yellowknife Finds Geothermal Partner
Yellowknife's plans to warm downtown buildings with geothermal heat from an old gold mine are back on track, thanks to a new partnership with a British Columbia company.
Con Mine, which produced gold from 1938 to 2003, has been identified as a prime source of geothermal energy due to its central location and warm temperatures in its underground shafts. (CBC)
The City of Yellowknife has signed a memorandum of understanding with Vancouver-based Corix Utilities to help build an energy system that would tap into geothermal heat from Con Mine.
Corix is offering to finance the whole $60-million project, meaning taxpayers would not have to foot the bill, said Jack Touhey, the company's vice-president of public and government affairs.
"If Corix were to step in and provide the financing, it wouldn't involve or wouldn't be a requirement of the residents of Yellowknife," Touhey told CBC News on Tuesday.
Con Mine produced five million ounces of gold from 1938 until it closed in 2003.
Reports have found temperatures exceeding 30 C in the mine's underground shafts, along with its location near the city's downtown, would make it a prime source of geothermal energy.
The City of Yellowknife wants to develop a district energy system that would distribute geothermal heat from the Con Mine to offices, apartments, schools and other buildings downtown.
Residents voted against financing
The city initially wanted to take the lead in the governance and ownership of the geothermal system's assets, while sharing the financing with a private partner that would build and operate the system.
But in March,residents voted against allowing the city to borrow up to $49 million to finance its capital investment.
City officials had hoped for public approval for the financing, as the federal government was offering Yellowknife a Clean Energy Fund grant for the geothermal project as long as the city could prove its own commitment.
A federal official told CBC News the government is still in talks with the City of Yellowknife about funding.
With Corix now offering to be the primary financier in the geothermal project, the city would only contribute grants it can get, said Coun. Mark Heyck.
"Basically the city has zero financial risk now because we wouldn't be borrowing any money, so our equity stake would be limited to whatever grants we can secure to put towards the project," Heyck said.
City would have less control
But the councillor added that customers may end up paying more for Con Mine geothermal heat, since the city would not have as much say over rates.
"In terms of control, as with any business arrangement, the less equity you have in a project, the less control you have," he said.
At the same time, Heyck said he is confident Corix can sell the geothermal heating system to customers in downtown Yellowknife.
"It's not just the city that's sort of putting forward a project with some unanswered questions, but it's a company that has a good record of building and operating these systems throughout North America that can come out and start to talk to members of the community to explain the system to them," he said.
Corix and the City of Yellowknife hope to finalize the terms of their partnership by November, putting them on track to start construction next year.
Jun 22, 2011
ORMAT Signs BOT Agreement For 45MW Tikitere Geothermal Plant In New Zealand
In a release today and also reported by various news outlets, a subsidiary of Ormat Technologies, Inc. (NYSE: ORA) “has entered into a Build, Operate and Transfer Agreement (“BOT Agreement”) with Tikitere Geothermal Power Limited (“TGL”) to explore, develop, supply, construct, own and operate a geothermal power plant in the Tikitere geothermal area near Rotorua, New Zealand. Ormat was awarded the project following a competitive bidding process initiated by TGL.
TGL was established as a joint venture vehicle for the various Maori trusts that own and administer the land. TGL’s shares are held by the Tikitere Trust. The field from which the energy will be drawn is owned by the Tiki Tere Trust, Paehinahina Mourea and Tiki Tere A (Aggregated) and the Manupirua Ahu Whenua Trust. The wells will be sited on land owned by the Paehinahina Mourea Trust.
Under the BOT Agreement, the parties will jointly develop a geothermal power plant with an estimated capacity of approximately 45 MW. The project will be operated by Ormat, which shall be the project’s beneficiary for an initial period of 14 years following commercial operation and then 100 percent of ownership interests in the project shall be transferred to TGL. During the BOT period, TGL will receive an income stream while a coordination committee, comprised of representatives from both parties, will monitor the operations of the project in order to protect and promote the heritage and cultural values of the Maori land owners.
The project will utilize Ormat’s generating units, similar to those already deployed in 12 geothermal projects in New Zealand, totaling approximately 260 MW.
The BOT Agreement is conditional upon receiving regulatory approval. Construction of the power plant will commence following the obtaining of local permits, as well as satisfactory feasibility results following exploration and development activities to be carried out by Ormat.
Jim Gray, Director of TGL, said, “Following the competitive bidding process we ran to find the most suitable project partner, we are pleased to be joining forces with Ormat on this project, the true value of which goes far beyond its economic and commercial success. Through the involvement of Ormat Technologies, and the human, cultural and community values shared by all those involved, this is truly a paradigm shift for New Zealand Maori in the fulfillment of our vision.”
“We thank TGL and the trusts for their confidence in Ormat”, said Lucien Y. Bronicki, Chairman of the Board and Chief Technology Officer of Ormat Technologies. “As the first BOT project for Ormat in New Zealand, this will diversify Ormat’s portfolio that today includes operations in the U.S., Guatemala, Nicaragua and Kenya. Upon completion, it will expand our existing portfolio by approximately 8 percent. As with previous developed projects in New Zealand, Ormat will maintain close cooperation with local contractors and engineering firms.”
The new plant will optimize energy utilization by converting the heat of both geothermal steam and brine from geothermal wells into electrical power. Like all Ormat plants in New Zealand, the Tikitere plant will reinject 100 percent of the geothermal fluid by using air cooling without any water consumption. The 100 percent reinjection serves both to sustain the reservoir and produce electrical power with virtually no environmental impact.”
Source: Ormat
Jun 20, 2011
Development Making Progress at U.S. Geothermal’s Neal Hot Springs Project
Recent news from the U.S. mention that “U.S. Geothermal is moving forward on its project to develop and construct a geothermal power generation plant west of Bully Creek Reservoir at Neal Hot Springs, with construction having started on some facilities and work completed on productions wells.
The Neal Hot Springs geothermal project was the first presentation of the first day during the Eastern Oregon Resource Advisory Council’s meeting Tuesday at the Holiday Inn Express. Members of the council provide advice to the Bureau of Land Management and the Forest Service concerning planning and management on federally-owned land and resources.
“Production wells are complete,” Scott Nichols, environmental lands and permitting manager for U.S. Geothermal, said during his presentation. Attention is now turning to injection wells, through which water that has been run through the power plant will be pumped back into the ground for reheating and maintaining the resource. The company will be relying on fractures in the rock to allow water to flow back to the production wells because the rock is impermeable.
Also, an office and shop are under construction and the remainder of the site, with the generating plant and cooling tower, will follow, Nichols said. Output from the plant is estimated to be up to 22 megawatts.
U.S. Geothermal received a U.S. Department of Energy loan guarantee to help finance the project.
The company is about 15 to 18 months out from bringing the plant on line, Nichols said. An agreement has already been reached with Idaho Power on the sale of the general power.”
Source: Argus Observer
Jun 10, 2011
BC to hold geothermal lease sale
In a release today, The Province of British Columbia Ministry of Energy and Mines provides the following Crown Geothermal Resources Notice of Public Tender for the "Competition for the right to explore and develop crown geothermal resources" on July 26, 2011.
Titles and Corporate Relations Division
Ministry of Energy and Mines
PO Box 9326, Stn Prov Govt
Victoria, BC V8W 9N3
Telephone: 250-952-0335
Facsimile: 250-952-0331
Email:.(JavaScript must be enabled to view this email address)
Jun 10, 2011
Ormat Technologies Offered Conditional Commitment for DOE Loan Guarantee
Reno, Nevada, June 9, 2011 -- Ormat Technologies, Inc. (NYSE: ORA) today announced its subsidiary, Ormat Nevada Inc. (“Ormat Nevada”) received an offer of a conditional commitment from the DOE that would provide a partial guarantee for up to a $350 million loan to support a geothermal power project expected to generate up to 121 MW of power from three Nevada based facilities built in two phases.
The three facilities -- McGinness Hills, Jersey Valley and Tuscarora -- will provide clean and baseload power through 20-year power purchase agreements with Nevada Power Company, a subsidiary of NV Energy.
Dita Bronicki, CEO of Ormat Technologies said, “The DOE 1705 program provides us with financing terms that enables us to finance a portfolio of facilities that are being developed in two phases. This innovative approach to project finance was made possible thanks to the DOE loan guarantee. We are thankful to the DOE’s Loan Programs Office and the rest of the team that moved the project thus far, and will continue working towards the closing of this transaction.”
The facilities utilize Ormat’s proprietary OEC technology, which are commercially proven and installed in approximately 1,370 MW of geothermal power plants and other electricity generating systems around the world. The OEC employs a binary organic Rankine cycle, with hot water drawn from wells deep below the Earth’s surface. The water’s thermal energy is used to heat a secondary fluid that is vaporized and then forced through a turbine to generate electricity.
Lender-applicant, John Hancock Life Insurance Company (USA) submitted the application under the Financial Institution Partnership Program (FIPP).
Jun 09, 2011
Ormat Technologies Secures $130 Million Supply & EPC Contract for Ngatamariki Geothermal Power Plant
Reno, Nev., June 8, 2011-- Ormat Technologies, Inc. (NYSE: ORA) today announced that it received the largest product order in the company’s history. The Supply contract and the Engineering, Procurement and Construction, (EPC) contract, signed by two of its subsidiaries with Mighty River Power Limited (Mighty River Power) of New Zealand, are for the first stage of the Ngatamariki geothermal project valued at a total of approximately $130 million. The new power plant is to be constructed on the Ngatamariki Geothermal Field in New Zealand. Construction of the power plant is expected to be completed within 24 months from the contract date.
Dita Bronicki, CEO of Ormat Technologies said, “This marks the largest EPC contract that Ormat has ever entered into for one geothermal plant. Our backlog since the beginning of the year has more than doubled and, as of the beginning of the second quarter, stands at record high of over $230 million. Accordingly, we are increasing our Product Segment guidance for 2011 by approximately 15 percent to between $90 million and $100 million.”
Mighty River Power, a state-owned enterprise, is a New Zealand electricity generation and electricity retailing company and one of the most experienced geothermal operators in the world. Geothermal energy represented 33 percent of Mighty River Power’s overall generation in the last quarter -- a total that is expected to grow to approximately 43 percent by 2013, following the completion of the new power plant.
Mrs. Bronicki continued, “We are very proud to receive this repeat contract which demonstrates the confidence Mighty River Power and its Maori Trust partner have in our technology, experience and knowledge. We have a long-standing relationship with both and are excited for the opportunity to, once again, work with the Mighty River Power geothermal team to deliver another strong performing power plant on schedule.”
Mighty River Power’s Chief Executive Dr. Doug Heffernan said, “Our Company is now seeing the benefits of the near NZ$1 billion investment it has made in geothermal generation over the past five years flowing through to the Company’s financial performance as exampled by the 22 percent uplift in earnings, (EBITDAF) recorded for the six months to 31 December, 2010. The Ngatamariki project will allow us to continue that growth trend by building on the core competency we have now developed in geothermal. We are particularly pleased to have placed the contract for the design, supply and construction of plant with Ormat and look forward to another great project delivery from this very experienced team.”
Lucien Bronicki, chairman and CTO of Ormat Technologies, Inc., said, “New Zealand is one of the early pioneers in geothermal energy development. For the past forty years, it has been the country with the most consistent policy of support for geothermal energy and has developed advanced expertise in drilling, geophysics, reservoir engineering, as well as operations. NZ consulting firms assisted many developing countries such as the Philippines, Kenya and Indonesia in geothermal development. Because of their extensive knowledge, New Zealand companies recognized very early, some 25 years ago, the value of Ormat’s technology and experience in optimizing resource utilization. The cooperation between New Zealand’s geothermal companies and Ormat has continued since then and also in other countries.”
Mr. Bronicki concluded, “Ormat has supplied technology and plants adapted to various types of geothermal fields to all of New Zealand’s key geothermal players. We view this milestone as a demonstration of the effectiveness and reliability of Ormat’s technology, as well as a trust in our accumulated geothermal knowledge and experience. The completion of this power plant will bring the total installed capacity of Ormat’s technology in New Zealand to approximately 350 MW in 14 plants. We look forward to a fruitful cooperation with Mighty River Power in this project and in further developing geothermal resources in New Zealand and around the world.”
About the Ngatamariki Geothermal Project
The new power plant will be comprised of four air-cooled Ormat Energy Converters and will allow 100 percent geothermal fluid reinjection, which serves both to sustain the reservoir and to produce electrical power with virtually no environmental impact. The specification and special technical requirements for this power plant are based upon Mighty River Power’s and Ormat’s long professional experience in geothermal development.
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 80 U.S. patents. Ormat has engineered and built power plants, that it currently owns or has supplied to utilities and developers worldwide, totaling approximately 1370 MW of gross capacity. Ormat’s current generating portfolio includes the following geothermal and recovered energy-based power plants: in the United States - Brady, Brawley, Heber, Jersey Valley, Mammoth, Ormesa, Puna, Steamboat, OREG 1, OREG 2, OREG 3 and OREG 4; in Guatemala - Zunil and Amatitlan; in Kenya – Olkaria III; and, in Nicaragua - Momotombo.
Jun 08, 2011
Nevada Geothermal Power Inc. Acquires Iceland America Energy, Inc. Project Assets In Imperial Valley
Vancouver, B.C. (June 8, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) and Iceland America Energy, Inc. (IAE) are pleased to announce that they have closed an agreement (News Release dated February 23, 2011) whereby NGP has purchased a 100 percent ownership of IAE’s geothermal assets comprised of the New Truckhaven, East Brawley and South Brawley Projects in the Imperial Valley, Southern California for a payment of US$680,000 in cash (US$564,000 paid) and 6,074,069 shares (to be issued). Reykjavik Energy Invest hf (REI), a subsidiary of Reykjavik Energy (RE-Orkuveita Reykjavikur, Iceland), is the majority owner of IAE with an 83.7% interest and will become a significant shareholder of NGP.
The acquisition of these strong project assets in California is in keeping with NGP’s business plan of focusing on U.S. geothermal power development, expanding geographically into higher temperature resource areas and diversifying off-take agreements. The alignment of interest with REI as a shareholder, and RE-Orkuveita Reykjavikur, an experienced geothermal developer and power plant operator, provides opportunities for cooperation in the future for mutual benefit.
The Imperial Valley is one of the world’s premier geothermal areas with highly productive, high temperature geothermal resources occurring over a large area in an active structural belt. Existing power plants at four sites have an aggregate capacity of approximately 560 MW, however the development potential of the Valley is considered to be much greater. California has the most aggressive Renewable Portfolio Standard of any US State and requires significantly more clean power to be developed in the next six years. The Company’s newly acquired projects are well located to supply the large southern California market with needed clean, renewable, base-load geothermal power.
