News
Feb 24, 2011U.S. Geothermal Secures $96.8 Million Project Loan for Neal Hot Springs
CanGEA member U.S. Geothermal announces:
BOISE, Idaho - February 24, 2011 (NYSE Amex: HTM; TSX: GTH) U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, today announced the financial closing with the U.S. Department of Energy ("DOE") of a $96.8-million loan guarantee to construct its planned 23-megawatt-net power plant at Neal Hot Springs in Eastern Oregon.
Neal Hot Springs is the first geothermal project to complete a loan guarantee under DOE's Title XVII loan guarantee program, which was created by the Energy Policy Act of 2005 to support the deployment of innovative clean energy technologies. The DOE loan guarantee will guarantee a loan from the U.S. Treasury's Federal Financing Bank. The $96.8-million Federal Financing Bank loan represents 75% of total project cost. When combined with the previously announced equity investment by Enbridge Inc., the loan provides 100 percent of the capital remaining to fully construct the project.
"Today's Federal loan guarantee announcement cinches the deal to bring more renewable energy jobs to Eastern Oregon and adds another milestone in Oregon's march back to economic growth," said Senator Ron Wyden of Oregon. "Development of renewable energy is not just a slogan in Oregon, it's a genuine opportunity."
The Neal Hot Springs project will create high-quality American manufacturing and construction jobs through the construction of the power plant, which is being supplied by Houston-based TAS Energy, Inc., a provider of high efficiency modular energy systems. U.S. Geothermal anticipates about 95 percent of the power plant's infrastructure and parts will be supplied by U.S.-based manufacturers. Approximately 150 construction jobs and over a dozen permanent jobs are expected to be created during the project's 18-month construction phase.
"Increasing the number of Pacific Northwest jobs while we increase the renewable energy component of our power portfolio is an outstanding win for our region and our nation," said Rep. Greg Walden, a consistent supporter of U.S. Geothermal's project-development efforts. "The first of hundreds of boots are on the ground in eastern Oregon already and we look forward to completion of this important project."
Idaho Governor C.L. "Butch" Otter said, "This major new development by Idaho-based U.S. Geothermal makes a significant contribution to our Project 60 goal of growing Idaho's gross domestic product to $60 billion and is a shot of good news to our region's economy."
Idaho's largest utility, Idaho Power Company, previously signed a 25-year power purchase agreement with U.S. Geothermal's wholly owned subsidiary, USG Oregon LLC, for up to 25 megawatts of power per year. Beginning in 2012, the base energy price is $96 per MW Hour and escalates annually. The calculated 25-year levelized price is $117.65 per MW hour.
"U.S. Geothermal's consistent supply of base load power - generating and regenerating electricity from underground natural resources - is established as a cornerstone of smart economic development, and we are an energized partner to the country to build out resources that make a difference in our communities," said Daniel Kunz, President and Chief Executive Officer of U.S. Geothermal. "The Department of Energy's renewable-energy programs are making a real difference in the sustainable economic health of our country."
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project will be the company's third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio project is currently undergoing construction of a new 8.6 net MW binary cycle power plant.
For additional information please contact:
Saf Dhillon - Investor Relations
U.S. Geothermal Inc.
Tel: 866-687-7059
Fax: 208-424-1030
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Scott Peyron
Scott Peyron & Associates, Inc.
Tel: 208-388-3800
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Feb 24, 2011
CanGEA Board Member John McIlveen Highlights the Positive Outlook for the Listed Geothermal Players
In recent interview, CanGEA Board member John McIlveen makes the point of job potential in the renewable energy industry and highlights geothermal energy as a renewable energy source.
He also gives his insight on the political situation regarding renewable energy incentives in the United States that effect developers listed on the Toronto Stock Exchange, such as Magma Energy, Ram Power, Nevada Geothermal Power and U.S. Geothermal.
Referring to the outlook of stock price development for those companies he is actually giving a conservative but positive outlook on the companies' development activities and the significant upside for those companies when they bring their projects online.
For the full article see: PennEnergy
Feb 23, 2011
Nevada Geothermal Power Inc. Signs Agreement to Purchase IAE’s Geothermal Assets in California
CanGEA member Nevada Geothermal Power Inc. announces:
Vancouver, B.C. (February 23, 2011), Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) and Iceland America Energy, Inc. (IAE) are pleased to announce that they have signed an agreement giving NGP the exclusive right to purchase 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 US$4,150,000. NGP will pay US$100,000 in cash and the balance in NGP shares having a deemed value of C$0.65. Reykjavik Energy Invest hf, a subsidiary of the City of Reykjavik's geothermal utility Orkuveita Reykjavikur (Iceland), is the majority owner of IAE with a 83.7% interest and will thus become a significant shareholder of NGP. The deal is expected to close by March 31, 2011.
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 operated by Cal Energy and Ormat Inc. have an aggregate capacity of approximately 560 MW. Among other current projects in the region, Energy Source is constructing the Hudson Ranch 49.9 MW geothermal power facility and Ram Power is drilling production test wells at their 50 MW Orita geothermal power project.
The New Truckhaven and East Brawley properties are advanced stage projects that fit into NGP's business plan focusing on the U.S., expanding geographically and diversifying off-take agreements. NGP believes that a 30-35 MW steam flash or binary power plant can be developed for the low-salinity New Truckhaven resource by the end of 2013 using conventional technology. At East Brawley, commercial productivity has been demonstrated in several deep wells. Ram Power's current drilling program is sited immediately north of NGP's to be acquired East Brawley leases. NGP will commence work for power plant scoping studies, well permits, transmission line access and water supply for both the New Truckhaven and East Brawley projects.
New Truckhaven
The New Truckhaven property on the west side of the Salton Sea, is comprised of 6267 acres (approximately 10 square miles) of Federal and private geothermal leases covering a broad thermal anomaly identified in 1500-ft deep gradient holes and two deep production test holes. The area is largely undeveloped. It is readily accessible by paved Highway 86 and within a few miles of power transmission lines providing access to the power markets in southern California.
A high-temperature geothermal resource is confirmed in a deep test well to 8000 feet which penetrated valley basin-fill sedimentary units to 6300 feet and granite basement rocks from 6300 feet to Total Depth (TD). The maximum well temperature recorded was 392°F (200°C). Sand units between 3000-6300 feet, overlying the granite basement have formation temperatures of 350-390°F (177-199°C) and are the target geothermal reservoir formations of the NGP/IAE program. Geothermal brine sampled during flow testing showed relatively benign chemistry and low Total Dissolved Solids (TDS = 3900 ppm) in contrast to other deeper Imperial Valley geothermal reservoirs. Geothermometry from geothermal fluid collected during flow tests predicts source temperatures of 380-396°F (193-202°C) in good agreement with measured temperatures. The previously drilled well can be reopened for new production tests at relatively low cost.
A recent well by Iceland America (IAE Trk-1) penetrated sedimentary units to 6400 feet and granite basement from 6400 feet to total well depth of 7140 feet. Target sand units were intersected between 1900-3300 feet and 5150-6400 feet and temperatures up to 350°F (177°C) were recorded. It is interpreted that the IAE well is on the northern edge of the reservoir and could be used as either a production or an injection well.
NGP will commence water availability, transmission access, and scoping studies for an initial 30-35 MW power plant, which could be a steam flash plant or a binary plant, as well as work to obtain drilling and flow testing permits. Water is available from local groundwater sources and/or from a shallow artesian aquifer intersected at 625 feet in IAE-Trk-1. NGP has met with the Imperial Valley Irrigation District regarding transmission line access. The Company anticipates starting reservoir drilling in 2011 with a view to completing the project in 2013 in order to qualify for a Federal ITC/Tax grant.
East Brawley
At East Brawley, leases controlled by IAE total 6752 acres (approximately 10.5 square miles) including key leases in the central part of the East Brawley thermal anomaly immediately south of current drilling by Ram Power at the Orita project. Commercial productivity has been demonstrated in several deep wells within the East Brawley geothermal field. Temperatures greater than 500°F (260°C) occur at depths below approximately 10,000 feet. Ram Power released test results from the Orita-2 well, located ½ mile north of the IAE East Brawley property; the well was reportedly tested at 8-10 MW with resource temperatures of 570°F (299°C).
In 2011, NGP will commence work for well permits and complete geothermal reservoir and power plant scoping studies.
South Brawley
IAE has a 50% leasehold on 1920 gross acres (three square miles) in the South Brawley Geothermal Area. NGP will determine if a secure land position can be established in the South Brawley Geothermal Area. No physical work is planned in the immediate future.
Brian Fairbank, President and CEO of Nevada Geothermal Power commented, "I believe that NGP, Iceland America and Reykjavik Energy Invest will benefit immensely from the synergies created by this new agreement. The new Imperial Valley projects fit nicely into NGP's business plan and we are looking forward to expeditiously moving these projects ahead."
Paul Wilson, CEO, Iceland America stated, "This transaction with Nevada Geothermal Power provides a clear path forward for the development of these projects. We are confident that they will bring these projects to production on a timely basis for the benefit of our lessors, the Imperial Valley economy and in support of California's renewable energy targets. We are pleased with the opportunity to work with the talented team at NGP."
"We are very pleased with the transaction and the prospects it has for geothermal utilization in California. We are looking forward to providing NGP with access to Reykjavik Energy's experience and expertise in developing and operating geothermal installations," said Helgi Thor Ingason, CEO of Reykjavik Energy and REI COB.
MDB Capital Group, LLC is acting as independent advisor to IAE in the transaction. The agreement is subject to regulatory approval.
For more information contact Nevada Geothermal Power Inc.
Investor Inquiries:
Paul Mitchell
Nevada Geothermal Power Inc.
Telephone: 604-688-1553 X118
Direct Line: 604-638-8784
Toll Free: 866-688-0808 X118
Email: .(JavaScript must be enabled to view this email address)
Feb 23, 2011
Ormat Reports Financial Results
CanGEA Member Ormat Announces:
RENO, Nevada, February 22, 2011 -- Ormat Technologies, Inc. (NYSE: ORA) today announced financial results for the fourth quarter and full year ended December 31, 2010.
The highlights for the year and recent development:
• 15.5% increase in Electricity Segment revenues;
• Annual net income of $37.2 million, or $0.82 per share;
• Completed the 15 MW Jersey Valley Plant in Northern Nevada and the 8 MW Puna expansion;
• Raised approximately $250 million in debt offering;
• Refinanced $24.9 million in tax equity transaction for OPC power plants;
• Increased land position to 343,000 acres;
• Acquired the balance of the Mammoth complex; and
• Continued progress in greenfield development sites.
Commenting on the results, Dita Bronicki, Chief Executive Officer of Ormat, stated: “The significant resources we have invested in the acquisition, exploration and development of new leases, as well as project enhancements, are reflected in the steady growth of our total generation. This positively impacted revenue in our Electricity Segment, which reached $291.8 million, a 15.5% increase over last year. We currently have ten projects in various stages of construction and development that we expect will add significantly to our generation and top-line growth through 2013.”
“Looking to the longer-term, we continue to search for new geothermal fields while keeping a careful eye on value. Lease acquisition and greenfield development remain key to our long-term objectives, and are supported by our ability to raise attractive financing. Our land portfolio totals over 343,000 acres and we have 15 projects in various stages of exploration. We raised approximately $250 million in a bond offering and we will continue to pursue the benefits of the stimulus ARRA where eligible. In our product business we see some results from our marketing efforts with new orders added to our backlog and are optimistic that some of current negotiations will mature into additional orders in the near future.”
“The low output and high costs of North Brawley materially impacted our results in 2010. However, we expect to see improvement, both in terms of revenue and costs towards the end of 2011. North Brawley capacity was recently increased to approximately 30 MW following the addition of a new injection area and work to increase the output of the power plant will continue in 2011.”
The North Brawley power plant was tested under U.S. GAAP guidance for impairment in the current year due to the low output and the higher than expected operating costs. Based on these indicators we tested North Brawley for recoverability by estimating its future cash flows. The test for recoverability concluded that no impairment existed at December 31, 2010. However, if we will not be able to bring the project capacity to approximately 45 MW and the operating costs to the level of our current projections, we will have to record a material impairment of the investment in the power plant. We are continuously assessing our progress in achieving these objectives.
For full release and Ormat financial summary
Feb 23, 2011
CanGEA Member Mannvit Announces Commission of 133 MW Geothermal Heating Plant in Iceland
CanGEA Member Mannvit Announces:
133 MW Geothermal Energy Plant Commissioned
The Hellisheidi Geothermal Power Plant, located just outside of Reykjavik, and owned by Orkuveita Reykjavikur (Reykjavik's utility company), is now producing 213 MWe and 133 MWth. Mannvit, as the mechanical and overall plant designer, is proud to report on the successful commissioning of the plant’s 4th phase, which added a 133 MWth heating plant in December 2010. The heated water from the plant is piped 20 km (12 miles) to storage tanks in Reykjavik, the capital of Iceland, to be used for heating and bathing. The 80°C (176° F) fresh water is heated by the condensed steam coming from the turbines and the water from the steam separators, thus maximizing the use of the heat. The Hellisheidi plant’s purpose is to meet increasing demand for electricity for industry and hot water for space heating in Reykjavik.
One of the world’s largest geothermal plants once completed
Later this year the 5th phase will go online, which will add an additional 90MW of power. Plus, two more heating plant phases of 133 MWth each will also be added to respond to increased heating demand. Once completed, the Hellisheidi plant will become one of the world's largest geothermal plants, with 303 MW installed power capacity and 400 MW for heating, a total of 700 MW. Approximately 50 geothermal wells will support the entire production. Mannvit’s services included project management, overall plant design, environmental impact assessment (EIA), detailed mechanical design of the plant, HVAC and control systems design, bid document preparation and tender evaluation, site supervision, commissioning, acceptance testing and training of operators
Feb 23, 2011
SNC-Lavalin Joint Venture Awarded Contract for Geothermal Project in New Zealand
CanGEA Member Announces:
Montreal | February 22, 2011
SNC-Lavalin is pleased to announce that Contact Energy (Wellington, NZ) has awarded the McConnell Dowell/SNC-Lavalin/Parsons Brinkerhoff joint venture an engineering, procurement, construction (EPC) contract for the construction of the 166 MW Te Mihi geothermal project.
Two new geothermal power units of 83 MW each will be constructed near the Wairakei geothermal power station, northwest of Taupo, NZ. Once completed, approximately 45 MW of the existing Wairakei geothermal station will be decommissioned, resulting in a net increase from the combined Te Mihi and Wairakei stations of 114 megawatts.
“We are pleased to be expanding our experience in the worldwide renewable energy market, and to be working with a leading green energy company like Contact Energy” said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group. “Geothermal power is playing an increasingly important role in the industry, and our mandate to execute on this contract is a testament of our ability to successfully deliver complex projects all over the world.”
Contact Managing Director, David Baldwin, says the commitment to Te Mihi reflects the company’s view that geothermal is New Zealand’s most cost effective new base load generation.
“The additional 114 megawatts is expected to be required by the market by 2013 as economic growth resumes, and will also contribute to lowering Contact’s average cost of generation,” he said.
SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. SNC-Lavalin has offices across Canada and in over 35 other countries around the world, and is currently working in some 100 countries. In business since 1911, the Company celebrates its 100th anniversary in 2011.
Media Contact
Leslie Quinton
Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc.
SNC-Lavalin Inc.
514-393-8000 x7354
Investors
Denis Jasmin
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
SNC-Lavalin Inc.
514-393-8000 x7553
Feb 18, 2011
Magma Energy Reports Icelandic HS Orka Signs New PPA with Silica Company
CanGEA's member, Magma Energy Corp, announces:
VANCOUVER, Feb. 17 /CNW/ - Magma Energy Corp. (TSX: MXY) announces that its 98.53% owned Icelandic energy subsidiary, HS Orka hf, has today signed a power purchase agreement committing the sale of 30 megawatts of geothermal power to Iceland Silica Corporation ehf., "ISC", for the period May 1, 2013 to December 31, 2015. Iceland Silica is developing a new silica metal production plant at Helguvik, Iceland, about 20 km from HS Orka's power plants. HS Orka's 30 megawatts of supply will come from electricity currently being supplied to an Icelandic aluminum smelter under a soon expiring power contract that ties the electricity price to the world aluminum price. The new contract with ISC has no linkage to the aluminum price and will be at a higher base price than the contract it is replacing. HS Orka's supply of power to ISC's new plant will also provide a broader industrial base for Iceland and improve the employment and economic development situation in the vicinity of HS Orka's geothermal power operations.
About Magma Energy Corp.
Magma Energy Corp. is a global geothermal power company which operates, develops, explores and acquires geothermal energy projects. We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and two in Iceland.
Feb 16, 2011
Nevada Geothermal Power Inc. Named as Part of 2011 TSX Venture 50
CanGEA's member, Nevada Geothermal Power Inc., announces:
Vancouver, B.C. (February 16, 2011) -- TSX Venture Exchange announced yesterday that Nevada Geothermal Power Inc. (NGP) (TSX.V: NGP, OTCBB: NGLPF) has been named as one of the TSX Venture 50, a ranking of strong performers listed on TSX Venture Exchange.
The 2011 TSX Venture 50 is comprised of ten companies from each of five sectors; Clean Technology, Mining, Oil & Gas, Diversified Industries, and Technology & Life Sciences.
"We are very pleased to be included as part of the TSX Venture 50 for the third time running," said Brian Fairbank, President & CEO, NGP. "Our listing on the TSX Venture Exchange continues to provide us with a valuable environment to meet our financial objectives and goals for further growth."
The 2011 TSX Venture 50 companies were chosen based on the following criteria, with equal weighting assigned to each: share price appreciation, trading volume, market capitalization growth and analyst coverage.
"Our market provides a unique growth opportunity for early stage companies, and we are very pleased to celebrate the success of these issuers," said John McCoach, President, TSX Venture Exchange.
About Nevada Geothermal Power Inc.:
Nevada Geothermal Power Inc. operates the 49.5 MW Faulkner 1 geothermal plant in Nevada. It is a growing, renewable energy 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 five properties: Blue Mountain, Pumpernickel Valley, Edna Mountain and North Valley in Nevada, and Crump Geyser, in Oregon. These properties are at different levels of exploration and development. NGP estimates a potential of between 150 MW and 300 MW from its current leaseholds.
Investor Inquiries:
Ashli Gauvreau
Nevada Geothermal Power Inc.
Telephone: 604-688-1553 X124
Direct Line: 604-638-5046
Toll Free: 866-688-0808 X124
Email: .(JavaScript must be enabled to view this email address)
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition, or alteration to the information catered in this Press Release including such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Feb 16, 2011
CanGEA to Present Geothermal Options at “Alternative Energy for BC First Nations”,Tomorrow
Calgary, February 16, 2011
Canadian Geothermal Energy Association chair, Ms. Alison Thompson, presents geothermal energy options for First Nations at the BC First Nations gathering in Vancouver, British Columbia on Thursday, February 17, 2011.
This conference–style gathering will join over 300 First Nation leaders, alternative energy trail-blazers, industry specialists and government representatives to examine trends and encourage discussion on practices and policies in BC First Nations' alternative energy development.
Ms. Alison Thompson, Chair Canadian Geothermal Energy Association, is presenting at the BC First Nations gathering, at the Sheraton Wall Centre, Vancouver February 17, 2011 at 1:00pm (PST). She will also participate in discussion at 3:00pm(PST).
Venue: Sheraton Wall Centre, 1088 Burrard Street, Vancouver, BC, V6Z 2R9
For more information contact:
Alexander Richter
CanGEA Director
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About CanGEA: The Canadian Geothermal Energy Association (CanGEA) is a national, not for profit, industry association that believes its members can provide competitively priced, renewable, base-load energy to Canadians, to U.S. export markets and to the global energy market. CanGEA works on behalf of its members to facilitate the sustainable growth of the geothermal energy industry and promotes publicly listed companies on the Canadian Exchanges. Website: www.cangea.ca
Feb 15, 2011
Canada Listed Developers Represent 25% of Geothermal Development in the U.S.
In an industry update on the U.S. Geothermal Energy Industry, Icelandic bank Islandsbanki is looking at geothermal development and the industry in the United States. The report, released last week at the U.S. Geothermal Energy Association's Finance Forum in New York, talks about the Canadian angle in U.S. geothermal development.
The Toronto Stock Exchange has played an important role for attracting financing for geothermal developers, so it is no surprise for Islandsbanki pointing out that about 25% of geothermal power capacity in development in the U.S. today are projects by companies listed on the Toronto Stock Exchange, namely CanGEA members Ram Power, Corp. (TSX: RPG), Magma Energy Corp. (TSX: MXY), Nevada Geothermal Power (TSX-V: NGP), and U.S. Geothermal (TSX: GTH). Other CanGEA members mentioned in the report are Ormat Technologies (NYSE: ORA), Caldera Geothermal, Enbridge Inc. (as partner of U.S. Geothermal), Geothermal, Raser Technologies (OCTBB: RZTI) and drilling firm ThermaSource, Inc.
While 61% of operating geothermal power generation capacity is held by publicly listed companies, 53% of currently planned capacity is developed by listed companies.
With development incentives in the United States, it is not surprising to see that international companies from Canada, Italy and New Zealand are exploring the U.S. market and actively develop projects in the country. Clearly, more favorable legislative incentives in Canada could help spur development in Canada. Canadian companies have the experience and could look at the Canadian market if there would be similar incentives like there are in the U.S.
The report can be downloaded via Islandsbanki's website
