News
Sep 18, 2009From Black Gold to Green Gold: Renewable Energy is the Future
Oil worked for us in the past, but renewable energy is the future. It is obvious that our supply of oil is depleting rapidly, but maybe more importantly, our dependability on it has polluted the earth. Sen. Edgardo J. Angara writes how renewable energy has become the new hot spot for global investments, reaching a record $100 bilion just two years ago. As of 2007, the world reached 240 gigawatts from renewable energy. Even though this only accounts for 3.4% of our energy generation so far, it also only represents 5% of the globe’s power capacity. If renewable energies continue to be invested in consistently, the world could be running on clean, unlimited energy by 2090, or if you’re positive like Greenpeace, they think it can be done by 2050.
The big news here, is that the Philippines may be leading the world when it comes to renewable energy production, using their massive potential for geothermal energy. “According to the 2008 Global Energy [R]evolution: Global Sustainable Energy Outlook, the average investment in the power sector for the next three decades can reach $590 billion per year. The same study identified the Philippines among the “hot spots” of new power-generation investment, along with China, North America, Europe, Indonesia and Thailand.”
Right now, the Philippines is producing 80% of what the United States is with geothermal energy, and with recent plans to expand this clean resource (announced by the Energy Development Corp.), the Philippines can expect to become the largest geothermal energy producer in the world within a decade.
“Unleashing this massive potential in renewable energy entails a paradigm shift in how we produce and use electricity,” says Sen. Edgardo J. Angara, “a process that we have already initiated through the passage of the Renewable Energy Act last year.”
Southeast Asia has been extremely proactive in implementing the necessary steps to incorporate renewable energy into their agenda. The Renewable Energy Act was enabled to provide the necessary framework to facilitate and promote renewable energy technologies in Southeast Asia.
Canada has yet to integrate these necessary steps into our future energy plans. Currently, Canada is producing an alarming 0 megawatts of geothermal electricity, even though the resource is widely available and the technology is extremely accessible. It is clear that Canada is being left behind in the renewable energy game, and it’s time for our Canadian government to wake up. Projects for geothermal energy in Canada have yet to be implemented due to our lack of policy, or the fact that it just hasn’t been effective. In order to jump-start this remarkable, clean resource, the government needs to put forth the means in which policy can be made. This requires more research so that policies can be backed up by science.
If you’re passionate about Canada becoming more efficient and “green,” please let the government know where you stand! Solar and wind can only get us so far as they are not continuous; however, geothermal electricity grants us a much greater and continual energy output.
To read the full article, “Philippines: Saudi Arabia of Renewable Energy” please click here.
Sep 16, 2009
Borealis Co-Production Project Approved for $2.6m in Funding from AERI - Seeks Oil & Gas Partnership
CanGEA member, Borealis GeoPower, has had “The Borealis Project” approved by the Alberta Energy Research Institute (AERI) under the Clean Air and Climate Change: Technology and Innovation Program. The project goal is to research the effective utilization of geothermal energy from deep oil and gas wells in the Canadian Foothills for the production of electrical power.
After a rigorous evaluation process dating back to late 2008, Borealis was recently approved for $2.6 million in project funding. This innovative renewable energy project was one of the few geothermal energy projects accepted by the AERI program and Borealis is looking forward to partnering with an oil and gas partner to make this project a reality.
For more information about their Co-Produced Fluid Projects please visit the Borealis project webpage.
Sep 14, 2009
Geothermal Roundtable (video interview)
CanGEA members Ross Beaty, CEO of Magma Energy Corp., and Gary Thompson, CEO of Sierra Geothermal, are interviewed by the Globe & Mail. To view the video interview, click here.
Sep 14, 2009
Magma Energy Corp Announces Release Date For 2009 Audited Fourth Quarter And Year End Results
Vancouver, B.C., Canada, September 11, 2009 - Magma Energy Corp. (TSX:MXY) today announced that its audited 2009 fourth quarter and year end results will be released on Monday, September 14, 2009 after markets close. A conference call and live audio webcast to discuss the results will be held on Tuesday, September 15, 2009 at 11:30 am ET (8:30 am PT).
Q4 2009 Results Conference Call and Webcast Information
Date:
Tuesday, September 15, 2009
Time:
11:30 am Eastern Time
8:30 am Pacific Time
Dial-In Numbers
North American toll-free number: 1-866-223-7781
International toll number: 1-416-340-8018
Audio Webcast
A live audio webcast can be accessed at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=149527
Playback
North American and International toll number: 1-416-695-5800
Replay Pin Number: 3280413
Playback available for one week following the call
VANCOUVER, BRITISH COLUMBIA—(Marketwire)—09/14/09—(All amounts in US dollars unless otherwise stated and all production figures are approximate)
Magma Energy Corp. (TSX: MXY) today reported its audited financial and operating results for the fourth quarter and fiscal year ended June 30, 2009. The Company also provided an update on its operations. This earnings release should be read in conjunction with the Company’s MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company’s website at http://www.magmaenergycorp.com and have been posted on SEDAR at http://www.sedar.com.
Commenting on today’s announcement, Ross Beaty, Chairman and CEO, said: “Magma Energy had a great first full year of operations. We put together a world-class exploration and operating team, raised more than $130 million in tough financial markets, acquired one producing asset in Nevada, built up a large land position of geothermal exploration properties in Nevada, Idaho, Oregon, Peru, Chile and Argentina and, just after year-end, entered into agreements to acquire a minority interest in another producing asset in Iceland. Magma ended the year with a successful initial public offering and listing on the Toronto Stock Exchange and is entering its second full year in healthy condition.”
For the fourth quarter ended June 30, 2009, Magma reported a net loss of $1,876,768 or ($0.01) per share. Revenues from energy sales were $1,256,612 and gross profit from the Soda Lake plant operations was $644,221. Net income from plant operations was $288,415, after deducting amortization, accretion and depletion expenses. Net loss for Magma’s geothermal exploration and corporate activities during the fourth quarter was $2,165,183, which included a write-off of $1,086,822 of expenditures incurred on the Carran property in Chile, which was relinquished at year-end.
For the year, Magma reported a net loss of $4,459,556 or ($0.03) per share. Total revenues included energy sales of $3,963,167 from the date of the Company’s acquisition of its Soda Lake operation on October 3, 2008 to June 30, 2009 and $521,963 from the sale of portfolio energy credits. Gross profit from operations for the same period was $1,481,845. Net income from plant operations, after deducting amortization, accretion and depletion expenses, was $430,165.
Expenses incurred by the Company in connection with geothermal exploration and corporate activities during the year were $4,889,721. Significant expenses included general and administrative costs of $1,524,452 and the write-off of $1,086,822 of expenditures incurred on the Carran property in Chile.
On a cash basis for the year ended June 30, 2009, the Company spent $1,318,494 on operating activities and $38,228,140 on investing activities, including investments of $17,556,726 to acquire the Soda Lake operation and $15,396,112 to acquire and explore the Company’s portfolio of exploration projects. At June 30, 2009, Magma had cash and cash equivalents of $4,482,693 and working capital of $2,747,685. Subsequent to the year end, the Company completed an IPO and raised net proceeds of $88 million. The Company had no long-term debt at year-end and an undrawn credit facility of C$20 million.
Soda Lake Operation
Magma acquired a 100% interest in the Soda Lake geothermal operation in October, 2008. The operation produced an average of 11 megawatts (“MW”) during the year, yielding 8 MW of net production after accounting for internal load. In early 2009 Magma began engineering work on an $18.2 million plan to double Soda Lake’s capacity to 23 MW gross (16 MW net). This plan includes drilling of two new production wells, which were completed in July and August 2009 to depths of 4,468 and 8,995 feet respectively, and upgrading and refurbishing the existing power plant equipment. Magma is now evaluating options in order to optimize the field’s production/reinjection strategy and continuing with engineering work on the plant expansion, which is now targeted for completion in early 2010.
Exploration Activities
By year-end, Magma had assembled a portfolio of five advanced-stage geothermal exploration properties and 12 early-stage properties located in Nevada, Idaho, Oregon, Chile, Peru and Argentina. Most of the Company’s exploration activities occurred on its Chilean properties. Early work on the Carran property was not promising and the property was relinquished at year end. However, work on the Maule property was very successful, with encouraging geophysical results in a March survey followed by successful drilling of a slim hole in June, which encountered plus-200 degrees C water at a depth of only 650 meters. A report by the Company’s consultants SKM indicates the existence of an inferred geothermal resource at Maule capable of producing 140 MW of electrical generation for at least 30 years. In July 2009, Magma submitted a plan to Chilean authorities for an initial 50 MW power project on the Maule property.
Other exploration activities have mostly focused on the Company’s extensive US properties, and include permitting and geological, geochemical and geophysical exploration, followed by planned slim hole and production drilling in coming years. In July 2009 Magma acquired an additional 7 geothermal exploration properties in the 2009 Bureau of Land Management lease auction and also applied for $25 million in grants under the US government’s American Recovery and Reinvestment Act programs for shared exploration expenditures.
In addition to the Company’s active exploration programs, acquisition reviews were made of a number of geothermal projects in Indonesia, New Zealand, Iceland and other jurisdictions, culminating in the Company’s pending acquisition of a minority stake in a large producing geothermal operation in Iceland.
Outlook
In the upcoming year, Magma Energy expects to increase its electricity production at its Soda Lake operation from 11 MW gross (8 MW net) to 23 MW gross (16 MW net) and close its purchase of a 43% stake in Icelandic geothermal company HS Orka, which will add to Magma’s interest 75 MW of net geothermal production and 107.5 MW of planned net production over the next six years. The purchase of the Company’s interest in HS Orka will be financed by cash on hand and the credit facility available to it, or from other sources of capital available to the Company. In addition to these operating activities, Magma plans a very aggressive year of geothermal exploration activities on its assets in North and South America, and continuing acquisition reviews of advanced and producing geothermal assets. Its two-year goal remains to produce in excess of 100 MW by the end of 2010 and hold geothermal properties with independent estimates of more than 1,000 MW of geothermal production capacity.
Magma’s Chairman and CEO, Ross Beaty, concluded: “Magma’s mission to become one of the world’s pre-eminent geothermal power companies will be achieved by success in exploration, project development, plant operations and acquisitions. We were active in all those areas in the fiscal year just-ended and we will remain so in the year ahead, while maintaining our strong financial condition. I especially look forward to working with our new colleagues and stakeholders in Iceland and to advancing our great exploration portfolio in the USA and Chile. Geothermal energy is a wonderful source of clean and sustainable energy and I am really pleased to be working with a great team in building a large new company in such an important industry.”
About Magma Energy Corp.
Magma Energy Corp. is a geothermal power company which is actively engaged in operating, developing, exploring and acquiring geothermal energy projects. We currently have one operating power generation plant (the Soda Lake Operation in Nevada), and an extensive portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.
Magma Energy will host a conference call to discuss financial and operating results on Tuesday, September 15, 2009 at 11:30 am ET (8:30 am PT). North American participants dial 1-866-2237781 and International participants dial 1-416-340-8018. The call will also be broadcast live on the Internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=149527. Listeners may also gain access by logging on at http://www.magmaenergycorp.com. The call will be available for replay for one week after the call by dialing 1-416-695-5800 (for North American and International callers) and entering replay pin number 3280413.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain “forward-looking information” within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, management’s expectations regarding our growth, results of operations, revenues, requirements for capital, future demand for and prices of electricity, business prospects and opportunities, exploration and development, geothermal resources, recoverable geothermal energy or energy generation capacities. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management.
A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. The forward-looking information is based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: the success and timely completion of planned exploration and expansion programs; the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of reserve estimation methodology and analysis used to estimate the quantity of potentially recoverable thermal energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund exploration, development and expansion programs; and general economic conditions. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur.
There can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information. Other than as required by applicable securities laws, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.
Contacts:
Magma Energy Corp.
Alison Thompson
Vice President, Corporate Relations
604.646.1882
.(JavaScript must be enabled to view this email address)
http://www.magmaenergycorp.com
Sep 14, 2009
CanGEA Geothermal Workshop a Great Success in Toronto!
CanGEA would like to thank all of the participants who took part in our successful 2009 Conference and Workshop in Toronto. The event was completely sold out with 100 people in attendance. We have had nothing but positive feedback from the event and new participants said they found the workshop very informative and inspiring. Participants included government policy makers, geothermal developers, members of the media, Canadian financial institutions and investors at large. This was a very diverse group of attendees as we had participants from Europe, South America, Australia, and from all around North America.
CanGEA Executive Director and Chair Alison Thompson shared in the positive outlook for Canadian geothermal resulting from the conference. “While there was very little federal government participation and no provincial government representation, this industry continues to progress with the help, now, of the Canadian, U.S. and International Financial community. We look forward to the day when our government realizes the opportunity they are overlooking.”
CanGEA would also like to offer special thanks to our international geothermal friends for their continued and highly-appreciated support in helping Canada overcome barriers on the path to a strong geothermal industry. CanGEA looks forward to putting on similar events in other Canadian cities in the near future to help inform people of this overlooked renewable resource.
Pictures (top to bottom): Alison Thompson Executive Director and Chairman CanGEA and VP Corporate Relations Magma Energy; Ian Tharp of Dundee Securities and Ram Orenstein of Ormat Technologies; Andrea Zaradic, VP Corporate Development, Magma Energy Corp; CJ Arrigo of Glacier Partners and Gary Thompson, CEO Sierra Geothermal Power; networking during reception
These pictures were taken by Alex Richter from ThinkGeoEnergy and can also be seen here.
Sep 11, 2009
Financings Fuel Interest in Geothermal Power!!
From today’s Globe and Mail, Richard Blackwell describes the potential boost from investors in the North American geothermal sector due to recent financings and government incentives. Even though the technology has been around for decades, governments have been slow to realize this powerful renewable resource right beneath our feet. Investors have gained little interest in this resource before due to the small players involved and the long lead times to get projects fully implemented.
“It has been the Rodney Dangerfield of renewable energy, but things are changing,” analyst Greg Reid of Wellington West Capital Markets Inc. told a geothermal investing conference yesterday. “The very consistent level of power produced by geothermal plants over very long periods is now being recognized as highly valuable,” Mr. Reid said. “Even when the long lead times to get a plant up and running are factored in, geothermal operations generate power more cheaply over the long term than wind or solar power projects,” he added.
Investors may have their heads up now that two large companies have completed significant equity issues:
- Magma Energy Corp. raised more than $110-million in an IPO on the TSX - its stock has gone up 30% since the IPO
- Ram Power Inc. raised almost $180-million by selling 60-million subscription receipts, which will eventually be converted to shares on the TSX - Ram is in the process of amalgamating its own operations with those of two other public companies, Western GeoPower Corp. and Polaris Geothermal Inc.
Another great lead for geothermal power has been from the Obama administration distributing grants for geothermal production and tax credits for those facilities once implemented.
The U.S. geothermal business has also been boosted by individual state mandates that require a certain percentage of power to come from renewable sources. In Canada, however, a lack of incentives from federal or provincial governments, and a difficult permitting processes, have kept the geothermal sector from developing,
CanGEA has developed a code that will set standards and proper protocols for the way companies report the amount of energy they expect to glean from drill sites. Alison Thompson, CanGEA’s chair and newest member for Magma Energy Corp., says that this, “measure is one of the important steps CanGEA is taking to help de-risk the industry. Government funding for exploration wells is also something we’ve been asking for.” Lee Deibert, the Director at Large for CanGEA notes that, “the response from industry and the investment community to date, in regards to the development of the Code, has been extremely favourable.” We are excited to be a part of the blooming Canadian potential for geothermal power, and hope that this Code will spark some fires.
To read the article in full click here.
Sep 10, 2009
Nevada Geothermal Site Gains Energy Efficiency with ElectraTherm Heat to Power Generator
CARSON CITY, Nev.—ElectraTherm, Inc. announced today the planned deployment of two 50kW ElectraTherm Green Machines slated to generate electric power from geothermal heat at the Florida Canyon Mine in Northern Nevada.
Scheduled for commissioning in September, the project is the first commercial geothermal application of ElectraTherm’s Organic Rankine Cycle (ORC) technology powered by its patented Twin Screw Expander.
“We are proud to have a solution that makes green power from our geothermal energy that has, until now, been lost as waste heat,” said Joel Murphy, Vice President of Operations and General Manager at Florida Canyon Mines. “That green power is nearly free because we already pump the water for our mining operations. Florida Canyon Mining is committed to being part of the energy efficiency solution in America and we are developing multiple sources of clean power at the mine.”
ElectraTherm’s heat-to-power technology dramatically improves energy efficiency at geothermal sites by exploiting the hot water found in mines as well as tens of thousands of capped oil wells and other small geothermal resources.
“We are fielding interest from geothermal sites around the world who want to take advantage of ElectraTherm’s new technology to create power from untapped heat,” said Rob Emrich, ElectraTherm Vice President of Sales. “Compared to other forms of renewable energy technology, ElectraTherm offers one of the fastest payback periods in the industry, with long-term costs of under a penny per kilowatt hour. Our five foot by five foot system can access small and remote geothermal resources, which opens up a large market for creating electricity from geothermal heat.”
ElectraTherm announced in June that its Texas partner, Gulf Coast Green Energy, would employ Green Machines to make clean electricity at two projects funded by the Research Partnership to Secure Energy for America. The first of those projects will make power from heat captured in geothermal brine, a common byproduct found in capped oil wells.
About ElectraTherm, LLC
ElectraTherm, Inc. delivers renewable energy solutions for a sustainable future, now. The company’s proven, patented Twin Screw Expander enables its line of energy generators to make electricity from waste and geothermal heat or pressure instead of fossil fuel.
ElectraTherm’s fuel-free, emission-free and low cost technology offers the industry’s shortest payback period on investment. For more information on ElectraTherm and its cleantech, green power products, please visit http://www.electratherm.com.
ElectraTherm is a member of CanGEA.
To learn more, visit http://www.electratherm.com/products.html.
Sep 10, 2009
NEWS RELEASE: Magma Energy Corp. to open the TSX today!
CanGEA is proud to announce that, CanGEA member, Magma Energy Corp. will have the honour of opening the Toronto Stock Exchange (TSX) on September,10, 2009. Those from Magma who will be in attendance are: Ross Beaty, Chairman and CEO; Dr. Frank Monastero, President Magma Energy (US) Corp; Lyle Braaten, Secretary and General Counsel; Robert Pirooz, Independent, Chair Corporate Governance Committee; Andrea Zaradic, VP Coordinate Development; and Alison Thompson, VP Corporate Relations. While Magma is not the first geothermal company to be listed on the TSX, it is the first geothermal company to have the honour of opening the market. CanGEA would also like to acknowledge Magma’s newest geothermal recruit, CanGEA Executive Director & Chairman, Alison Thompson, who recently accepted the role as VP Corporate Relations.
About Magma Energy Corp.
Magma Energy Corp (TSX: MXY) mission is, “to be the pre-eminent geothermal energy company in the world.” Globally minded, Magma is focused on the exploration, development and overall implementation of geothermal energy projects. Magma’s impressive C$100 million IPO has signified investors growing confidence in the geothermal energy industry. With increased investor confidence CanGEA hopes the Canadian Government can acknowledge the importance of geothermal in Canada’s energy future.
Alison Thompson - New Team Member for Magma
CanGEA’s own Executive Director & Chairman, Alison Thompson, MBA, M.Eng, P.Eng, has been asked to join Magma’s executive management team as Vice President Corporate Relations. Alison joins Magma after serving with a major Canadian energy company as a Project Development Manager receiving global business development ventures, including geothermal energy. Alison will manage Magma’s investor, government and corporate relations as well as be involved with geothermal exploration project administration.
About Geothermal Energy
While fossil fuel availability swiftly diminishes, the search for alternative, clean energy has become THE top priority. Renewable energy is not just a fad, but a necessity: it is needed to maintain human productivity as well as preventing further damage to the earth by way of greenhouse gas production. Solar, wind, and hydro power have all been considered both renewable and clean; however, their energy output has not yet met standards set by human consumption comparable to our fossil fuel usage. Geothermal energy has been underrated, misunderstood, and ignored by the masses, but is potentially a massive source of base-load energy. When compared to other types of power plants, geothermal power plants have a very small footprint on the local area in which they are situated.
Sep 09, 2009
CanGEA Now with Full-Time Staff!
With the help of ECO Canada (Environmental Careers Organization), CanGEA has now been able to employ full-time staff! Under the federal government’s Youth Employment Strategy program, ECO Canada offers post-secondary graduates the opportunity to gain work experience in the environmental profession. The program has seen tremendous success with over 90% of ECO Canada interns securing meaningful employment in the environmental profession upon completion of their internship term.
These internships have enabled CanGEA to hire two new members as full-time staff: Lindsay Nielsen, and Drew Wiseman. Lindsay has just recently completed her B.Sc. in Natural Resources Conservation from UBC. Drew, also recently graduated with a B.Sc. in Geology from the University of Calgary. In 2010, Drew will return to the University of Calgary to begin a Masters of Science in Sedimentary Petrology.
With our two new additions to CanGEA’s staff, we hope to further increase our success in advocating Geothermal Energy in Canada.
To learn more about ECO Canada, visit their website http://www.eco.ca
Sep 09, 2009
Making Geothermal More Productive
SALT LAKE CITY, Sept. 8, 2009 – University of Utah researchers will inject cool water and pressurized water into a “dry” geothermal well during a five-year, $10.2 million study aimed at boosting the productivity of geothermal power plants and making them feasible nationwide.
“Using these techniques to increase pathways in the rock for hot water and steam would increase availability of geothermal energy across the country,” says geologist Ray Levey, director of the Energy & Geoscience Institute (EGI), which is part of the university’s College of Engineering.
EGI geologist Joe Moore – who will head the research effort at U.S. Geothermal Inc.‘s Raft River power plant in southeast Idaho – says most geothermal power in the United States now is produced west of the Rocky Mountains, where hot rocks are found closest to the surface.
“Hot rock is present across the United States, but new methods have to be developed to use the heat in these rocks to produce geothermal power,” says Moore. “We want to use oil and gas industry techniques to create pathways in the rock so that we can use the heat in the rocks to generate electricity.”
“There’s incredible potential in Utah and other states for geothermal development,” he adds. “Engineered geothermal systems [in which water is injected to enhance natural cracks in the rock] could provide a means of developing these resources much faster.”
The U.S. Department of Energy on Sept. 4 signed an agreement with the University of Utah and EGI to pay almost $7.4 million of the project’s cost.
To read the rest of this article click here.
