News
Sep 09, 2009Geothermal Is Getting Red Hot! - Part II
The future for geothermal energy
The crucial advantages of geothermal energy we reviewed last week, namely a mature and proven technology with a very high capacity factor (meaning that geothermal can supply utilities with baseload power around the clock) and low levelized cost of energy, make geothermal one of our high growth renewable energy sectors for the next decade. Recent advances in geothermal technology, such as the binary power plant, have made possible the economic production of electricity from geothermal resources lower than 302°F.
The most promising technology developments are the so-called Enhanced (or Engineered) Geothermal Systems (EGS) which generally refer to natural resources which have to be fully engineered and require artificial stimulation. This really means the creation of a man-made geothermal reservoir in hot dry rocks at depths of 13,000 to 16,500 feet by fracturing the rock with explosives or high pressure water injections. The hot water is then pumped back out of the reservoir and fed to the power plant.
To view the rest of this article click here.
Sep 08, 2009
News Release: Alison Thompson Joins Magma Energy As Vice President Corporate Relations
Vancouver, B.C., Canada, September 8, 2009 - Magma Energy Corp. (TSX:MXY) is pleased to announce that Alison Thompson, MBA, M.Eng., P.Eng., has joined the Company as Vice President, Corporate Relations. Ms. Thompson holds a Master of Engineering (Chemical) and a Master of Business Administration degree from McGill and Queens Universities respectively. She joined Magma from a major Canadian energy company where she was most recently Project Development Manager reviewing a number of global business development ventures, including geothermal energy. Ms. Thompson is currently Chair and Executive Director of the Canadian Geothermal Energy Association.
Ms. Thompson will manage Magma’s investor, government and corporate relations requirements and will also be involved with administration of Magma’s geothermal exploration projects as they advance towards production. Magma’s Chairman and CEO, Ross Beaty, commented, “I am really pleased we have been able to attract to our senior team such a skilled professional as Alison and look forward to her contributions as an integral member of our management group in the years ahead.”
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.
For further information please contact:
Alison Thompson, Vice President, Corporate Relations
Magma Energy Corp.
Phone: 604.646.1882
Email: .(JavaScript must be enabled to view this email address)
Alison is continuing on as Chair for CanGEA and will stay on as the Executive Director until a suitable replacement is found. We, at CanGEA, are very proud of Alison for her accomplishments and we know she will do amazing things for Magma Energy Corp. - they are lucky to have her!
Sep 08, 2009
Solar and Wind: Oppositions from Residents Fearing Visual Blight
This article, written by Jeffrey Ball of the Wall Street Journal, discusses the conflict between renewable, clean, energy and the negative response from those who do not visually enjoy these resources in their immediate surroundings.
The majority of people will say that they are all for alternatives to fossil fuels; however, they are not prepared to deal with large wind turbines and solar paneling where they can see them on a day to day basis. Another fear is that these renewable resources will take up vast amounts of land to produce enough power comparable to that produced by fossil fuels.
Ball comments that there are only two options: “Either renewable projects would have to be centralized and sprawling, covering many square miles apiece, or they would need to be distributed in pieces across millions of rooftops and lawns.” This may be true for resources such as wind and solar, but he (and everyone else) is forgetting about another renewable source of clean energy: Geothermal Energy!!
Here are a few quick facts about Geothermal Energy
- Geothermal energy is reliable, clean, and renewable
- Geothermal power plants have a very small footprint compared to other types of power plants
- Geothermal electricity plants provide a steady source of power, operating more than 95% of the year
- Iceland generates 17% of its electricity, and 87% of its heating from geothermal energy
- Geothermal energy is used in more than 20 countries to generate electricity, including Iceland, USA, Japan, Italy, Indonesia, New Zealand, Mexico, the Philippines, Kenya, Costa Rica, and Nicaragua!!
Clearly, geothermal energy is the way of the future!!
Renewable Energy, Meet the New Nimbys
Solar and Wind-Power Proposals Draw Opposition From Residents Fearing Visual Blight; a Dilemma for Some Environmentalists
To view this article click here.
Sep 08, 2009
Only 1 day left to register! CanGEA Investment Workshop and Networking Reception
Only 1 day left to register for the CanGEA Geothermal Power Investment Workshop and Networking Reception. Registration is open online until September 4.
Check out the workshop agenda here!
Sep 06, 2009
Unterhacing, Germany Builds and Operates its Own Geothermal Power Generating Station
Unterhaching is a town of around 25,000 people a few kilometers south of Munich, Germany. In most respects it is typical of small towns in Europe, except for one thing, it has built and now operates its own power generating station using hot water from deep within the Earth’s crust. The idea first arose in the 1990’s and over the following decade the town secured the venture capital and the engineering resources to drill down three-and-a half kilometers to tap into a permeable limestone layer containing hot water. The drilling was successful and a pump house was built – in effect, a mini power station – where the thermal water is used to generate 3.4 megawatts of electricity a year. This electricity is put into Germany’s national grid and Unterhaching is paid for it providing an annual source of revenue for the townspeople. The project also generates district heating for a growing number of the town’s residents. The Geothermie Unterhaching project provides a perpetual sources of energy that is virtually free of greenhouse gas emissions – entirely owned and operated by the town.
CanGEA is excited about these projects now happening all over the world, and would like to see Canadian towns experience the same!
Sep 04, 2009
Jacob Securities Inc. - NGP 1-Year Price Target: $1.95
CanGEA member, Jacob Securities Inc., announces that Nevada Geothermal Power (TSXV: NGP) should receive an ITC Cash Grant of $60million from the U.S. Treasury before the year ends. The grant is being paid by the US Recovery Act - this act requires 30% of capital expenditures to be paid towards renewable power projects.
Jacob Securities Inc. believe that NGP should increase in the next few months due to the following stimulants:
- Blue Mountain I goes online this month growing from 30 MW to 40 MW net by the year’s end.
- At 47 MW net output by 2010, Blue Mountain I should show an annualized run rate of $33million revenue and $26million EBITDA.
- The ITC Cash Grant of $60 million (no strings attached). In addition, $7.2million will be granted in 2010.
- The $180million 14% bridge facility will be refinanced down to $70million with 8% money.
The combined grant of $67.2million, almost matching NGP’s market cap, will allow the amount of drilling to increase substantially thereby preventing much of share dilution. Due to these awarded grants, Blue Mountain II, Pumpernickle, Crump, and Black Warrior are able to increase development in the hopes of successfully implementing well production in 2010.
About Jacob Securities:
Jacob Securities Inc. is an independent investment bank providing underwriting and financial advisory services to companies in the renewable power, infrastructure, energy and mining sectors. The firm, which is headquartered in Toronto, primarily services small to mid-cap issuers in North America and around the world.
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Sep 03, 2009
Large Geothermal Plant Planned for Germany
HANOVER, Germany, Sept. 1 (UPI)—Germany is building a geothermal power plant in Lower Saxony, where conditions were previously considered less than ideal.
The 2 MW plant, called GeneSys, will rely on a 2.5-mile-deep well to be drilled near Hanover, in northwestern Germany. So far, Germany has only three large-scale geothermal power plants in operation. This is not without reason.
In Iceland, for example, an array of active underground volcanoes heat up the earth even in low depths. That means you don’t have to drill deep in order to harvest the heat from the earth’s interior. Some 90 percent of Iceland’s heating needs is met by geothermal power plants. Not so in Germany. Here, you have to drill deep, which dramatically increases costs connected to geothermal energy.
But a group of scientists working for a German government agency has now launched GeneSys, a plant with a one-well pumping system that has significantly reduced drilling costs, the online version of German news magazine Der Spiegel reports.
Because of its groundbreaking pumping infrastructure, the entire plant will cost only half of what is usually needed—some $13 million. It is aimed at outfitting that agency with 2 MW of heating energy starting in 2013. Over the course of its projected 25-year lifetime, GeneSys will save the agency $21 million in heating costs, the experts claim.
To view the whole article click here.
Sep 02, 2009
Geothermal Is Getting Red Hot!
With all the flash and glitz of solar and wind power, geothermal has been largely under the radar, misunderstood and mostly ignored. Maybe investor interest will increase with the recent announcement of $350 million in new investment in geothermal technology under the Recovery Act and the recent over-subscribed ($87 million) initial public offering by Magma Energy Corp. (MGMXF.PK).
Geothermal energy has quietly been growing amongst other renewable energy sources because of a few key characteristics which make it increasingly attractive and commercially viable. I predict a decade of unprecedented growth for the geothermal industry, and outstanding long-term gains for investors in select geothermal stocks. To boot, this is a clean energy resource we have plenty of right here at home and one in which the U.S. has a leadership position with about 30% of worldwide capacity.
To read the rest of this article click here.
Sep 02, 2009
NEWS RELEASE - Western GeoPower President & CEO MacLeod Resigns
VANCOUVER, Canada, September 1, 2009, TSX Venture Exchange Trading Symbol: WGP - Western GeoPower Corp., a renewable energy company, today announced the resignation of Kenneth MacLeod as President, CEO and a Director of the company effective immediately. Daryl Clark has been named President & CEO on an interim basis, also effective immediately.
The changeover reflects the expected completion of the previously disclosed business combination between Western GeoPower and two other geothermal companies, resulting in a more broadly diversified entity under the leadership of Hezy Ram and the Ram Power management team.
“Ken’s leadership of Western GeoPower since its launch in 2001 has been a significant contributor to the company’s ongoing success. He was instrumental in creating a strategic vision and implementing a plan to make Western GeoPower an important geothermal developer in North America,” said Daryl Clark, Chairman of Western GeoPower. “On behalf of the Board of Directors, we wish him the very best in his future endeavors.”
“I have enjoyed the opportunity to lead Western GeoPower for over seven years”, said Mr. Macleod. “We have assembled a strong technical team and are well positioned to transition from a stand alone development stage company to become part of a larger, well capitalized company through the proposed business combination. The new company will have a broad and diversified pipeline of projects ranging from operating to near term operating and early stage development. I am confident that the Board will realize the full potential of the merged company.”
About Western GeoPower Corp.
Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable, baseload electricity generation. The Company is developing The Western GeoPower Unit 1 geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States; the South Brawley geothermal project in Imperial County, California, United States; and the South Meager geothermal project in British Columbia, Canada.
Written on behalf of the Board of Western GeoPower Corp
Daryl S. Clark, Chairman
A note from CanGEA:
Ken MacLeod and Western GeoPower have played an integral role in CanGEA’s existence and prosperity. Without Ken, CanGEA may not have happened. They have been a member since the beginning and CanGEA, in a large part, was formed in the first place to assist companies get the geothermal industry going in Canada. Ken is a pioneer and it has been our privilege to work on Western GeoPower and their visionary Meager Creek property’s behalf.
Sep 01, 2009
Magma Energy To Acquire 32.32% Of Iceland Geothermal Energy Producer HS Orka
VANCOUVER, B.C., CANADA, SEPTEMBER 1, 2009 - Magma Energy Corp. (TSX:MXY) announces that it has signed an agreement to acquire 32.32% of Iceland geothermal company HS Orka hf (“HS Orka”) from Reykjavik Energy (“RE”) and two other HS Orka shareholders. As previously announced, Magma was selected as preferred bidder by RE to acquire this significant stake in HS Orka. The agreement provides that Magma’s wholly owned subsidiary will purchase the interest for 3.7 billion Icelandic Króner (“ISK”) (approximately US$29.5 million) and a bond for the US Dollar Equivalent of 8.7 billion ISK (approximately US$68.8 million) repayable in a single installment in seven years with interest at 1.52% per annum. The bond will be secured by the shares acquired by Magma in this transaction.
The agreement is subject to several closing conditions including approval by the TSX, a waiver of pre-emptive rights held by third party shareholders of HS Orka and satisfactory negotiations with third parties in respect of HS Orka’s debt agreements. Closing of the transaction is expected in late September, 2009.
On July 23, 2009, Magma announced that it had signed an agreement to acquire a 10.78% shareholding in HS Orka, which agreement included an option to acquire approximately a 5% additional shareholding in HS Orka. If both transactions conclude, Magma would hold a 43.1% direct interest in HS Orka and an option to invest US$15 million in HS Orka’s expansion plans which would increase Magma’s stake up to 48.1%.
Ross Beaty, Magma’s Chief Executive Officer, said, “We view this as a long term investment in HS Orka. We intend to work closely with all stakeholders to maximize HS Orka’s value for all. The transaction provides HS Orka with a strong financial partner and provides Magma with exposure to Iceland’s substantial geothermal resources and highly skilled domestic workforce”.
Magma was advised on the transaction by Glacier Partners, an investment advisory firm specializing in the geothermal and seafood industries.
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 in Nevada known as Soda Lake and an extensive international portfolio of exploration properties throughout the western United States, Chile, Argentina and Peru.
Information
Contact: Andrea Zaradic, Vice President, Corporate Development
Magma Energy Corp.
Phone: 604.646.1874
Email: .(JavaScript must be enabled to view this email address)
