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Current Corporate Presentation as of June 2009
Link
http://www.geopower.ca/presentations/20090615CorpPresentation.pdf
Per the presentation, I am excited. Western Geo Power will be seeking financing to build their project Q2 of this year. I believe that we will start to see an upward trend similar to NGLPF, PGTHF, and HTM though they starting gaining PPS due to the government loan news. even so, WGP is my baby, my biggest investment into Geothermal is in NGP.V currently, but I am slowly adding shares of WGP.v fully knowing that she will follow the path of the other geothermals in this industry.
Correct, the NGP.V is the price in Canadian, while WGPWF is the price in US Dollars.
Current PPS as of 17June2009 is 0.25$
It closed at .265 yesterday (Canadian).
What is the current pps?
Supplying power is the end goal of any energy development company. They are drilling wells at this time, and will be seeking funding to build the plant late 2009 with a start up date of late 2010.
It is the latter. They already have announced contracts for selling the electricity (see post #28). I am keeping tabs on WGP, but do not currently own the stock.
Please explain what this company business is. Is it the development of the wells only? Or are they also going to operate the power plant and sell the electricity?
I was not too crazy about the price for this capital raise, but I am sure the participants were happy. From what I understand, the participants are current shareholders in the company and insisted on doing it at 0.25/share. Better to get it than not get it, but it's a tough environment out there for sure. The latest release on the first two wells at the Geysers looks good anyway...
Western GeoPower Corp.: First Two Geysers Wells Demonstrate 12.6 MW Initial Capacity
Tuesday September 2, 4:19 pm ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 2, 2008) - Western GeoPower Corp., (TSX VENTURE:WGP - News; FRANKFURT:WE6 - News) a renewable energy development company, today announced that testing of well WGP-2 at the Company's Unit 1 project at The Geysers Geothermal Field in California has confirmed that the well is a producer, with an initial capacity of 2.6 MW (gross). Together with the flow rate of approximately 161,000 lb/hr (73,028 kg/hr) demonstrated by well WGP-1 as announced May 6, 2008, the first two wells together have an initial capacity of 203,500 lb/hr (92,306 kg/hr) of steam, representing 12.6 MW (gross). The wells will supply steam to the 35 MWe Western GeoPower Unit 1 plant, projected to start commercial operations in early 2010.
Well WGP-2 was directionally drilled to the north-north-east of the pad to a total depth of 9,935 feet (3,028 m). A rig test carried out by independent consultants GeothermEx, Inc. demonstrated an initial, unstabilized steam flow rate of about 42,500 lb/hr (19,300 kg/hr) at the design flowing wellhead pressure of approximately 80 psia. The rig has been moved to the Filley leasehold and has commenced drilling well WGP-3 which has been designed to intersect known productive zones to the north of the pad. Completion of WGP-3 is projected for November.
"We are pleased to report that the combined productivity of the initial two wells exceeds our earlier expectations," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "Current projections call for the drilling of four to six additional production wells and one injector well, scheduled for completion in late 2009."
The Geysers geothermal field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900 MWe of clean, baseload electricity. Western GeoPower's Unit 1 project is situated in the south-western region of The Geysers field in Sonoma County.
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 California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of Western GeoPower Corp.
Kenneth MacLeod, President & CEO
Western GeoPower Announces $25 Million Financing
Thursday August 7, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 7, 2008) - Western GeoPower Corp., (TSX VENTURE:WGP - News; FRANKFURT:WE6.F - News) a renewable energy development company, today announced it has arranged up to $25 million in equity funding by way of a non-brokered private placement of 100,000,000 Units (the "Units") at a price of $0.25 per Unit. Each Unit consists of one common share and one transferable share purchase warrant exercisable into one common share for a period of 24 months from closing at a price of $0.45 per share during the first 12 months and $0.50 per share during the last 12 months.
The funds will be used for the ongoing drilling and development of the 35 MWe Western GeoPower Unit 1 geothermal project at The Geysers geothermal field in California and for general working capital.
"This funding is intended to satisfy the requirement for additional equity resulting from the increase in plant capacity from 28 MWe to 35 MWe as announced April 9, 2008," said Kenneth MacLeod, President and CEO of Western GeoPower. "With construction scheduled to commence in Spring 2009, the focus will shift to securing a construction loan for the balance of the project financing."
The warrants are subject to an acceleration provision, which provides that, if the Company's shares trade at $0.50 or more for ten consecutive trading days during the first year or $0.55 or more for ten consecutive trading days during the second year, it will trigger a 30 day timeframe within which to exercise the warrants or they will expire.
A finder's fee of 6% payable in Units, is applicable on a portion of the proceeds. The private placement is subject to regulatory approval and the Units will be subject to a four-month hold.
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 California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of the Board of Western GeoPower Corp
Kenneth MacLeod, President & CEO
May be of interest to you:
Rumors are swirling in the Israeli press that Ormat Technologies (ORA), a leader in geothermal energy, is about to close a large M&A. These rumors are based on an article in Power, Finance and Risk, which is reporting that:
Geothermal developer Ormat Technologies is on the hunt for strategic acquisitions and is working with Lehman Brothers to do so. The company has reportedly looked at a few targets but nothing has yet come to fruition.
The article continues:
Targets on the geothermal side are scant, but one Ormat is said to have chased is Salton Sea, an inland saline lake in Imperial Valley, Calif., with some 500-600 MW of geothermal potential.
The rumors are that the company will offer around $1.1 billion for the Salton Sea project, which will increase Ormat’s output by about 80%.
Funding the acquisition could be another problem. As of March 31, 2008, the company, had about $30.7 million in cash, and in May the company sold 3.1 million shares for about $149.6 million. This means that the company is going to have to take on a sizable amount of debt to complete an acquisition of this sort.
This move will help placate some large shareholders like Haim Katsman (no relation), who have been pushing for the company to get more aggressive in expanding.
I guess the question is whether taking on such large amounts of debt, is worth the expanded output? I guess only time will tell.
Disclosure: The author’s fund has a position in ORA. He has no position in any other stock mentioned as of August 4, 2008.
http://seekingalpha.com/article/88855-is-ormat-about-to-close-a-billion-dollar-m-a?source=yahoo
It will wake up soon,
and then what's your target in CD's?
This is a sleeper. Buy shares while it's low. IMO
The way things are going in the world,
this company may have one of the few reliable energy sources.
Is Google Interested in Ormat's Geothermal Technology?
by: Zack Miller posted on: May 22, 2008 | about stocks: GOOG / ORA
As we wrote last week, numerous business and political bigwigs were in Israel for Shimon Peres’s conference celebrating Israel’s 60th birthday. While we sat in on various sessions and working groups, given our bent for Israeli technology, we really enjoyed a session dedicated to the future of the Internet attended by the pioneers of modern media, including Sergey Brin, Google’s (GOOG) founder, and Rupert Murdoch, News Corp (NWS) founder.
It now appears that Brin is getting closer to Israel as he eyes specific deals with leading technology players in fields that might surprise you. Google’s Brin was very busy in Israel touring the country with his parents and fitting in numerous meetings with Israeli entrepreneurs. It looks like the outcomes of the meetings are “heating up” as Google appears close to doing a deal with global leader in geothermal energy and Israel green energy icon, Ormat Technologies (ORA).
According to Haaretz:
Senior Google executives met with their counterparts from Ormat at two alternative energy conferences, including a presentation on geothermal energy. Larry Page, the other co-founder of Google, even visited an Ormat geothermal plant in Desert Peak, Nevada.
This same article says that the goal of the program, as explained by Page, is:
to produce one gigawatt of renewable energy capacity that is cheaper than coal. We are optimistic this can be done in years, not decades.
CNET covered the story and added that:
Executives at Google have been clear that so-called enhanced geothermal is on the list of technologies they see as cost effective, compared with fossil fuel energy. The idea behind enhanced, or engineered, geothermal systems is to inject water underground to enhance the permeability of rock, allowing for the release and capture of more heat. Ormat is working on an enhanced geothermal project organized by the U.S. Department of Energy, which says that these advanced techniques can dramatically increase geothermal potential–by 40 times.
Disclosure: The author’s fund has a position in ORA as of May 21, 2008, and the author and his family own GOOG stock.
http://seekingalpha.com/article/78401-is-google-interested-in-ormat-s-geothermal-technology?source=yahoo
Back to basics! Click the link to see readers' comments.
Geothermal Energy Sources 101
by: George Gorski posted on: May 12, 2008 | about stocks: APA / CEG / CLR / CPN / CVX / DVN / ECA / EOG / GE / HAL / IDA / NGLPF.OB / ORA / PCG / PGTHF.PK / UGTH.OB / WFILF.PK / XOM
Geothermal power plants are an almost pollution free source of electricity. Typically they are installed near shallow subsurface sources of steam and / or hot water characterized by faults, seismic activity, earthquakes and volcanoes.
The source of geothermal power generation is steam at a temperature of ~300 degree C. To access geothermal steam involves drilling a vertical well to the source. A second well is drilled to the lower water level of the steam source. The steam is directed into a steam turbine which in turn generates electricity. The condensed turbine exhaust is re-injected back into the underground reservoir.
Usually there are no special geothermal power plant requirements. Conventional open cycle steam turbines, such as those manufactured by General Electric Company (GE), have been used.
There are essentially three types of geothermal power plants used depending on the source.
The first type known as a Dry Steam Power Plant, receives super heated steam from a very hot rock subsurface. Because of the temperature, there is no condensed water present and the geothermal steam is fed directed into the steam turbines.
Examples of these types of plants are found in northern California and have been in operation by utility companies, such as Pacific Gas & Electric (PCG), since 1960.
The second type known as a Flash Steam Power Plant, pumps hot water from the well into a flash drum where it separates into steam and condensed water. The steam is directed into the turbines and the condensed water re-injected back into the well. Examples of these types of plants are found near San Diego and Bakersfield, California.
The third type known as a Binary Power Plant, does not have enough heat in the pumped hot water. The water is directed through a heat exchanger used to vaporize a secondary fluid which in turn drives the steam turbines.
Geothermal power plants in California account for 5% of the state's electricity. USA generated geothermal power generation accounts for ~40% of total world production.
Calpine Corporation (CPN) of San Diego operates 19 of 21 geothermal plants in California. Other noteworthy geothermal power companies include Constellation Energy Group (CEG), IdaCorp Inc. (IDA), Nevada Geothermal Power Inc. (NGLPF.OB), Ormat Technologies Inc. (ORA), PG&A Corp. (PCG), Polaris Geothermal (PGTHF.PK), Raser Technologies (RZ), Sierra Geothermal Power Corp (SRAGF.PK), US Geothermal Inc. (UGTH.OB), Western GeoPower Corp (WGPWF.PK) and WFI Industries (WFILF.PK).
Chevron's (CVX) geothermal plants in Indonesia and the Philippines produce enough energy to power 7 million homes. Unocal (UCL) and Halliburton Energy (HAL) are leaders in the development of 280 degree C high temperature cements. Sandia National Laboratories [SNL] is in the forefront of geothermal well instrumentation.
Geothermal steam and / or hot water sources are typically located in relatively shallow pools in the rock subsurface. The temperature increases as the depth increases below the earth subsurface. On dry land and free of volcanic activity, the temperature is typically 41 degrees C higher for every 1.6 km below the surface. With a well drilled to a depth of 3 to 10 kms, steam can be successfully produced from water upon contact with subsurface rock. Steam produced in this manner is known as an Enhanced Geothermal System [EGS] and sometimes referred to as a Hot Dry Rock [HDR] system.
A 2006 MIT report suggests that there is enough hard rock at a 10 km depth in the United States subsurface, to supply the entire world's energy requirements for 30,000 years.
To produce a sustainable source of steam, the HDR system requires sufficient heat at a subsurface depth, a hard rock layer capable of being fractured, an insulating layer above it and a source of water.
Variations of the HDR System are currently being tested in the USA, Australia, France, Japan, Switzerland and Germany.
In the USA the challenge of an HDR System is drilling to the steam generating source rock layer at a depth of ~10 kms. ExxonMobil (XOM) has demonstrated its capability by drilling an 11 km well in its Chayvo, Sakhalin gas field.
The second challenge is utilizing fracturing technology at the required depth and successfully fracturing the hard rock. This involves typically pumping a mixture of sand and water under high pressure into the hard rock layer causing it to fracture.
There are many companies currently utilizing fracturing technology in the oil & gas industry. They include; Devon Resources (DVN), Encana Corp. (ECA), EOG Resources (EOG), Continental Resources (CLR), Duvernay Oil Corp. (DDV) and Apache (APA). However, I don't believe any of these companies have used fracturing technology at the required depths.
It is also unknown if the USA hard rock sub surface has a suitable insulating layer above it ensure containment.
A one time source of water is not considered an issue.
In some circles it is felt that Australia's subsurface granite layer buried below thick insulating sedimentary layers are more ideal to HDR development than comparable subsurface layers below the USA, Europe and Japan.
Another reason Australia's subsurface is more favourable, stems from the fact shallower depths are needed to achieve the required minimum temperature of 250 degree C for steam generation.
Geodynamics Limited (GDYMF.PK) has acquired a substantial Australian land base for HDR development.
From their calculations, they estimate that nine cubic kilometres of hot granite at 250 degrees C has the stored energy equivalent of 40 million barrels of oil. Geodynamics' Habanero 3 well, drilled using its 'Lightning Rig', reached a depth of 4,221 meters (13,850 feet) on January 22, 2008. They have verified 400,000 petajoules of high grade thermal energy, large bodies of granite to exist and the required temperature of 250 degree C for power generation. Geodynamics' long term production model supports a generating capacity of more than 10,000 MW.
Their 1 MW pilot plant is tentatively scheduled for production in Q4 2008. Proof of Concept certification, to demonstrate the viability of heat extraction from the hot rock reservoir and a confirmation of geothermal reserves, will be signed off prior to start-up by a team of independent geothermal experts from the USA.
Their 50 MW power plant is scheduled for production in 2012. It will produce zero emissions, require no external water supply and provide a continuous source of electricity to 50,000 Australian households.
Geodynamics estimates that it can produce power at $62 per MWh, including capital, operating and maintenance costs. This is considerably lower than current wind technology of ~$80 per MWh, and has the added advantage of continuous operation. The company expects to eventually drill 37 wells and build a 300MWe plant that would feed into the national grid and produce electricity at a cost that would rival new entry coal-fired power plants.
Disclosure: I have shares in EOG, ECA, CLR and APA.
http://seekingalpha.com/article/76811-geothermal-energy-sources-101?source=yahoo
Geothermal: A Hot New Power Source
by Jennifer Barry, GlobalAssetStrategist.com | June 6, 2008
As the global economy attempts to wean itself from dependence on oil, it will search for viable alternatives. Unfortunately, there is no magic bullet on the horizon that will replace petroleum. The solution for the next few decades will be a patchwork quilt of different technologies. The “alternative” energy sources like solar and wind are non-polluting, but they have serious limitations. While nuclear power will be important, it will not be the best solution for all energy needs.
Full article:
http://financialsense.com/fsu/editorials/barry/2008/0606.html
Good stuff, xanadu, thanks for posting it!
A good article about geothermal energy. Click the link to read the whole article:
Geothermal markets heat up
By Karen Broyles
Filed from Houston 5/5/2008 11:06:13 PM GMT
Geothermal power plant
Geothermal, long the "Sleeping Beauty" of sustainable energy, is now showing clear signs of waking up, particularly in the U.S., where geothermal potential remains largely untapped, according to Iceland-based Glitnir Bank.
Late last year, Glitnir opened a New York office with the aim of investing in geothermal projects. Glitnir then estimated that up to US$39.4 billion in funding would be needed to develop available geothermal energy resources in the U.S. through 2025, including US$16.9 billion over the next eight years and an additional US$22.5 billion in the following decade.
In the past, a lack of investment capital and technology to unlock lower heat geothermal resources, as well as a global emphasis on oil and gas exploration, kept geothermal on the backburner in the U.S. However, that tale is beginning to change as investment capital, a growing emphasis on cleaner-burning fuel alternatives to oil and gas and technological know-how are unlocking the wider potential use of geothermal.
"Geothermal energy is very complex and diverse in terms of its use. It's used for fish farming in China, alligator growing in Idaho, power production in China, spas and greenhouses in Mexico and Iceland, and used to heat buildings in Iceland," said Karl Gawell, executive director of the Washington, D.C.-based Geothermal Energy Association (GEA).
Now, companies such as Iceland-based financial group Glitnir are seeking a stake in U.S. geothermal potential through investment. In recent months, other financial investment companies such as Merrill Lynch also have backed U.S. geothermal development.
The expense of drilling geothermal wells has been a hindrance. However, investment capital has begun flowing into geothermal, and investment bankers are starting get their heads around that, while a geothermal well may take five to 10 years to pay off, it could run indefinitely as an energy resource, said Craig Nunn, member director of the Canadian Geothermal Energy Association.
With developments in turbine technology, "we can look at resources up to 100 degrees Celcius. If we're able to tap lower temperature geothermal systems, it opens a lot of doors to many, many locations."
"And we're not even looking at EGS [enhanced geothermal systems]. That opens a whole other set of doors," Nunn said.
Technology such as organic Rankine steam power plants has allowed regions such as southern Germany to access lower temperature geothermal resources. Gawell said that technology has allowed areas such as the U.S. state of Nevada to utilize geothermal power.
Other engineering techniques, for instance, using wastewater to generate geothermal power such as takes place at The Geysers geothermal field in California, also allow geothermal resources that couldn't be accessed previously to be utilized.
http://www.energycurrent.com/index.php?print=10318
Someone on Stockhouse asked the question as to what percentage of output the power purchase agreement covers. I passed that question along to the company and the response confirmed my guess, that the agreement covers 100% of the output from Unit 1.
CPN $23.00 Calpine surges on $10.8 billion NRG buyout offer
Thursday May 22, 8:05 pm ET
Calpine rises on NRG bid; analyst says Reliant and other wholesalers could be takeover targets
NEW YORK (AP) -- Shares of power wholesaler Calpine Corp. jumped Thursday after NRG Energy Inc. offered to buy the company in a move analysts said could open up buyout chatter elsewhere in the sector.
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NRG's all-stock offer for Calpine was valued at $10.8 billion as of Thursday's close. Analysts said the deal would make sense for NRG if the price was right. The initial offer, on May 14, valued Calpine shares at $22.98 per share, and Brian Chin of Citi Investment Research said a fair price would not go above the mid-$20 range. The per-share price is currently valued at $21.55 per share.
Calpine stock rose $1.72, or 8.1 percent, to $23, and reached a high of $23.36. Shares began trading in January. NRG shares fell $2.16, or 5.1 percent, to $40.35.
Chin said the last buyout in the sector was the $32 billion purchase of TXU Corp. by private equity firms Kohlberg Kravis Roberts & Co. and TPG. That deal was announced in February 2007. The analyst said there is a "plethora of possibilities" for buyouts and singled out Reliant Energy Inc. as one company that could get more attention.
Reliant shares gained $1.01, or 4.1 percent, to $25.81.
Calyon Securities analyst Gordon Howald said NRG has a good track record with integrating buyouts, and he added investors "should be comforted" that NRG does not plan on making an extended buyout attempt if Calpine is resistant to the offer.
Hi S_G, thanks for the article. I can see why they cancelled the previous PPA now. I have sent an e-mail to the company to try to find out if this contract represents 100% of the output from Unit 1 or whether there would be additional PPAs forthcoming. My guess is the former, but I am waiting to hear.
NCPA Boosts California's Geothermal Power With Major Agreement
Posted on: Tuesday, 20 May 2008, 15:00 CDT
Northern California Power Agency (NCPA) today announced the signing of a Power Purchase Agreement (PPA) with Western GeoPower, Inc. for the supply of approximately 265,000 MWh per year of clean, renewable, baseload electricity at a levelized price of $98 per MWh for 20 years. The power will come from Western GeoPower's 35 MWe Unit 1 geothermal power plant which is scheduled to come on line in early 2010 at The Geysers Geothermal Field in Northern California. This agreement increases the amount of geothermal power used by NCPA and its customers in Northern California by approximately 30%, and will emit approximately 4 billion less pounds of CO2 compared to even the cleanest natural gas-fired plant over the life of the contract. The PPA is not subject to Regulatory approval.
"Our commitment to explore and develop innovative and effective "green power" energy programs is reflected in this agreement," said Jim Pope, general Manager of NCPA. "By securing the geothermal power from the Western GeoPower Unit 1, our member communities in Northern and Central California will continue to benefit from what we consider to be the prime source of reliable and renewable energy compared to the cleanest natural gas-fired sources. The addition of this unit to our resources now expands our geothermal production from four to five plants at The Geysers."
For more than 25 years, NCPA has been operating four geothermal power plants of 55 MWe (220 MWe total capacity) each at The Geysers, located approximately 6 miles (10 km) southeast of the Western GeoPower Unit 1 project site. NCPA also owns and operates the steam field on which the plants are situated, including 8 deep injection wells used to re-supply the geothermal reservoir with water to create additional steam.
"The execution of this PPA reflects the tremendous spirit of cooperation that has been created between Western GeoPower and NCPA and is a significant milestone in the development of our Unit 1 project," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "The PPA represents approximately $26 million per year in revenue to Western GeoPower and $520 million over the 20-year term of the contract."
The Geysers geothermal field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900 MWe of clean, baseload electricity. Western GeoPower's Unit 1 project is situated in the south-western region of The Geysers field in Sonoma County.
About Northern California Power Agency (NCPA)
NCPA, located in Roseville, California, is a joint powers agency providing clean renewable energy to its 17 member communities and districts in Northern and Central California. Founded in 1968, NCPA owns and operates several power plants that together comprise a 96% emission-free generation portfolio. NCPA owns and operates four geothermal power plants of 55 MWe each at The Geysers, 252 MWe hydroelectric plants, 125 MWe Simple Combustion Turbine plants and 49.9 MWe Steam Injected Combustion Turbine plants for over 25 years.
Thanks,couldn't buy much as money not cleared yet for stocks under $1.00. Picked up 1700 shares
Looks like the stock is going to gap up at the open by a few cents. It's not overbought here, but I would be careful about using market orders to buy at the open here. Good luck!
Ah,you are welcome. Just hope I can get in b4 it bust thru the gate.
Thanks for the heads up!
Western GeoPower Signs $500 Million Power Purchase Agreement With NCPA
Tuesday May 20, 2:06 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 20, 2008 -- Western GeoPower Corp. (CDNX:WGP.V - News) (Frankfurt:WE6F.F - News), a renewable energy development company, today announced the signing of a Power Purchase Agreement ("PPA") with Northern California Power Agency ("NCPA") of Roseville, California for the supply of approximately 265,000 MWh per year of clean, renewable, baseload electricity at a levelized price of $98 per MWh for 20 years, from Western GeoPower's 35 MWe Unit 1 geothermal power plant scheduled to come on line in early 2010 at The Geysers Geothermal Field in Northern California. The PPA is not subject to any further approvals.
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"The execution of this PPA reflects the tremendous spirit of cooperation that has been created between NCPA and Western GeoPower and is a significant milestone in the development of our Unit 1 project," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "The PPA represents approximately $26 million per year in revenue to Western GeoPower, and $520 million over the 20-year term of the contract. The power price reflects the increase in California's power prices as announced by the California Public Utilities Commission in November 2007."
"Our commitment to explore and develop innovative and effective "green power" energy programs is reflected in this agreement," said Jim Pope, General Manager of NCPA. "By securing the geothermal power from the Western GeoPower Unit 1, our member communities in Northern and Central California will continue to benefit from what we consider to be the prime source of reliable, sustainable energy compared to the cleanest natural gas-fired sources. The addition of this unit to our resources now expands our geothermal production from four to five plants at The Geysers."
For over 25 years, NCPA has been operating 4 geothermal power plants of 55 MWe each at The Geysers, located approximately 6 miles (10 km) southeast of the Western GeoPower Unit 1 project site. NCPA also owns and operates the steam field on which the plants are situated, including 8 deep injection wells used to re-supply the geothermal reservoir with water to create additional steam. This PPA increases the amount of geothermal power used by NCPA and its customers in Northern California by approximately 30% and will emit approximately 4 billion less pounds of CO2 compared to even the cleanest natural gas-fired plant over the life of the contract.
The Geysers geothermal field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900 MWe of clean, baseload electricity. Western GeoPower's Unit 1 project is situated in the south-western region of The Geysers field in Sonoma County.
About Northern California Power Agency (NCPA)
NCPA, located in Roseville, California, is a joint powers agency that provides support for the electric utility operations of 17 member communities and districts in Northern and Central California. Founded in 1968, NCPA owns and operates several power plants that together comprise a 96% emission-free generation portfolio. NCPA has been operating 4 geothermal power plants of 55 MWe each at The Geysers, 252 MWe hydroelectric plants, 125 MWe Simple Combustion Turbine plants and 49.9 MWe Steam Injected Combustion Turbine plants, for over 25 years.
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 California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of Western GeoPower Corp.
Kenneth MacLeod, President & CEO
Hmmm,had this in portfolio tracker at Yahoo. This is some very good good news.
http://biz.yahoo.com/iw/080520/0398892.html
HTM $2.45 U.S. Geothermal Announces Stock Option Grant
Monday May 19, 3:14 pm ET
BOISE, Idaho, May 19 /PRNewswire-FirstCall/ -- U.S. Geothermal Inc. (Amex: HTM, TSX: GTH), a renewable energy development company focused on the production of electricity from geothermal energy, announced today that it has granted options pursuant to its Stock Option Plan to directors, employees and consultants to acquire 1,505,000 shares in capital of the company. The options are exercisable at a price of US$2.22 per share for a term of 5 years expiring May 19, 2013. The options will vest subject to the Company's Stock Option Plan.
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The Stock Option Plan was approved by the shareholders of the company at an Annual General Meeting held September 8th, 2005.
About US Geothermal:
U.S. Geothermal is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio Nevada and drilling Neal Hot Springs in eastern Oregon.
Well, this was not geothermal news.. but still interesting news about alternative energies:
BrightSource gets $115 million in new funding
Google, BP, StatoilHydro invest in solar thermal firm
By Steve Gelsi, MarketWatch
Last update: 12:00 a.m. EDT May 14, 2008
NEW YORK (MarketWatch) -- BrightSource Energy, Inc., a specialist in harnessing the heat from the sun to create steam for electric power generation, on Wednesday said it closed a $115 million round of financing from a diverse group of blue-chip backers.
VantagePoint Venture Partners, the company's initial investor, played a major role in forming the syndicate, which includes companies ranging from BP PLC (BP)to Google (GOOG) to StatoilHydro (STO) and BlackRiver, a unit of privately held Cargill.
Existing investors that participated in the latest round included DBL Investors, Draper Fisher Jurvetson, and Chevron Technology Ventures (CVX)
Oakland, Calif.-based BrightSource said the round marks its third major injection of capital for a total of $160 million in funding.
"These additional funds will enable the company to accelerate its plans to deliver utility-grade solar power at a time when many utilities are searching for reliable sources of renewable energy," BrightSource said in a written statement.
"Operating more efficiently than older solar thermal methods, and costing much less to build, our technology will change the way utilities generate electricity," said Arnold Goldman, the company's founder.
In March, BrightSource announced power-purchase agreements with PG&E (PCG) for up to 900 megawatts of electricity. It's now developing solar power plants in the Mojave Desert of Southern California, with construction of the first plant planned to start in 2009.
The move comes amid growing interest in solar from both institutional and retail investors.
In the last few weeks alone, Van Eck Global launched the Solar Energy exchange traded fund (KWT) along with a rival ETF called the Claymore /MAC Global Solar Energy Index (TAN) and a smaller mutual fund, the Firsthand Alternative Energy Fund (ALTEX).
Geothermal markets heat up
http://www.energycurrent.com/index.php?id=3&storyid=10318
By Karen Broyles
Filed from Houston 5/5/2008 11:06:13 PM GMT
Geothermal power plant
Geothermal, long the "Sleeping Beauty" of sustainable energy, is now showing clear signs of waking up, particularly in the U.S., where geothermal potential remains largely untapped, according to Iceland-based Glitnir Bank.
Late last year, Glitnir opened a New York office with the aim of investing in geothermal projects. Glitnir then estimated that up to US$39.4 billion in funding would be needed to develop available geothermal energy resources in the U.S. through 2025, including US$16.9 billion over the next eight years and an additional US$22.5 billion in the following decade.
In the past, a lack of investment capital and technology to unlock lower heat geothermal resources, as well as a global emphasis on oil and gas exploration, kept geothermal on the backburner in the U.S. However, that tale is beginning to change as investment capital, a growing emphasis on cleaner-burning fuel alternatives to oil and gas and technological know-how are unlocking the wider potential use of geothermal.
"Geothermal energy is very complex and diverse in terms of its use. It's used for fish farming in China, alligator growing in Idaho, power production in China, spas and greenhouses in Mexico and Iceland, and used to heat buildings in Iceland," said Karl Gawell, executive director of the Washington, D.C.-based Geothermal Energy Association (GEA).
Now, companies such as Iceland-based financial group Glitnir are seeking a stake in U.S. geothermal potential through investment. In recent months, other financial investment companies such as Merrill Lynch also have backed U.S. geothermal development.
The expense of drilling geothermal wells has been a hindrance. However, investment capital has begun flowing into geothermal, and investment bankers are starting get their heads around that, while a geothermal well may take five to 10 years to pay off, it could run indefinitely as an energy resource, said Craig Nunn, member director of the Canadian Geothermal Energy Association.
With developments in turbine technology, "we can look at resources up to 100 degrees Celcius. If we're able to tap lower temperature geothermal systems, it opens a lot of doors to many, many locations."
"And we're not even looking at EGS [enhanced geothermal systems]. That opens a whole other set of doors," Nunn said.
Technology such as organic Rankine steam power plants has allowed regions such as southern Germany to access lower temperature geothermal resources. Gawell said that technology has allowed areas such as the U.S. state of Nevada to utilize geothermal power.
Other engineering techniques, for instance, using wastewater to generate geothermal power such as takes place at The Geysers geothermal field in California, also allow geothermal resources that couldn't be accessed previously to be utilized.
Condensers and cooling towers at The Geysers Power Plant in California
Geothermal heat source was used for years in the gold mining industry, when miners would process gold ore with hot water. New interests include mining minerals from geothermal fluids such as lithium, which is in high demand for batteries in hybrid cars.
Oil and gas companies such as Chevron, which already have a substantial arsenal of knowledge regarding drilling, also have or are showing interest in geothermal, pursuing opportunities for co-production of geothermal resources along with oil and gas, said Nunn.
However, tax credits and other incentives to encourage geothermal development are needed, as well as consistent funding by the public and private sectors over the long-term, to allow development of geothermal resources in the U.S. and worldwide to continue, industry experts say.
Just as in the oil and gas industry, finding enough skilled workers to fill available jobs in the geothermal sector also presents a challenge.
"They are having a hard time finding people. They're competing with (and often losing to) the mining and petroleum industries. I have head hunters call from time to time. We need to accelerate undergraduate and graduate education," said Lisa Shevenell, director of the Great Basin Center of Geothermal Energy and Research Hydrogeologist, Nevada Burea of Mines and Geology at the University of Nevada at Reno.
Expanding the use of geothermal development in the U.S. would also require something of a culture change. In Iceland, geothermal heating is used at a community level: hot water is pumped up and circulated around a town or neighborhood. Americans are more accustomed to individual power delivery, said Robert Zierenberg, a geology professor at the University of California (UC) at Davis.
U.S. geothermal development
While geothermal use in the U.S. typically is associated with electricity generation, geothermal is used for a variety of purposes worldwide.
The focus of geothermal in the U.S. also primarily remains on natural systems, while in Europe, geothermal energy is being engineered, such as using power and heat together. "Just like in oil and gas drilling, wells are fractured and water injected to utilize geothermal resources," said Gawell.
While research funding efforts in the past have not been consistent enough to stimulate the steady development of geothermal technologies, the U.S. government's attitude towards geothermal appears to be changing.
Earlier this year, the U.S. Department of Energy (DOE) formed a multidisciplinary team with Ormat Technologies subsidiary Ormat Nevada, GeothermEx Inc., the University of Utah, the U.S. Geological Survey, and the national laboratories to create an Enhanced Geothermal System (EGS) at the Desert Peak hydrothermal field in Nevada. DOE has invested over US$5 million in the effort.
Analyses will be directed toward developing and executing a hydraulic stimulation program for an in-field, non-productive well of high temperatures of over 400 degrees Fahrenheit. The team will try to create or enhance the permeability by injecting high pressure water.
For fiscal year (FY) 2009, DOE's Office of Energy Efficiency and Renewable Energy (EERE) reports that proposed funding for U.S. geothermal energy development efforts would increase by US$10.2 million to US$30 million versus US$19.8 million budgeted for FY 2008. The funding increase will provide for field demonstrations of EGS technology. The proposed federal budget for 2009 was unveiled earlier this year.
Despite the funding increase, geothermal industry experts say continued tax incentives are needed to keep geothermal development rolling. While tax incentives currently are in place, they will expire at the end of 2009 and will need renewal.
Legislation has been introduced to renew these incentives. In early April, Sen. John Ensign (R-Nev.) and Sen. Maria Cantwell (D-Wash.) introduced the Clean Energy Tax Stimulus Act of 2008, which extends the incentives to encourage renewable energy. Extending the placing-in-service deadline through 2009 for the Production Tax Credit encourages electricity production using renewable energy sources such as geothermal, wind, biomass, hydropower facilities and other sources. These renewable energy plants will have valuable tax stability for 10 years.
Last month, the Clean Energy Tax Stimulus Act amendment was added to U.S. 3221, the Housing Act, in an 88-8 vote.
Legislators and government agencies at the U.S. state level also are putting forth efforts to develop geothermal energy or provide incentives for geothermal use.
In Washington, Senate Bill 6897 has been proposed that would authorize a comprehensive review of the Pacific Northwest state's geothermal resources and make recommendations regarding policy measures to facilitate environmentally responsible development of the resources for electric generation and concentrated heating purposes.
Interest in developing geothermal resources in Oregon and Washington is taking off as the Cascade Mountain range is estimated to hold "potentially significant" geothermal resources. To date, little exploration has been conducted in the region and no deep test holds have been drilled.
Provo, Utah-based Raser Technologies recently announced it has started development of two additional geothermal projects, bringing its total number of projects under development to seven. The new projects include a 10 MW plant in Utah and the company's first 10 MW plant in Oregon.
Raser currently has 970 acres under geothermal lease agreements in Oregon in addition to the 73,000 acres of International Paper property on which Raser holds an exclusive geothermal option in the state. Raser is evaluating this option and expects to enter into additional geothermal leases in Oregon under the agreement.
Oregon and Washington will hold a competitive geothermal lease sale, which is tentatively scheduled for June 12 of this year. California and Nevada currently are planning to hold a geothermal lease sale on July 15.
The U.S. Bureau of Land Management will implement a new process for geothermal lease applications through opening nominations and scheduling sales based on those nominations in upcoming sales.
Several states have already received several nominations from production companies, particularly Nevada and Oregon, with 73 and 50 nominations, respectively.
A delegation of state representatives from Montana in April traveled to Iceland to study the nation's network of geothermal electricity heat. The recent visit followed up on a visit by officials from Iceland in late 2007 in regards to the possible investment in geothermal energy development in Montana.
Earlier this year, Colorado unveiled its 2008 Geothermal Action Plan, which includes investigating frameworks for reducing barriers to geothermal development with community leaders, geothermal development experts and owners of geothermal properties.
The action plan also calls for the hiring of a full-time geologist with the Colorado Geological Survey to continue to assess the state's geothermal resources; develop a strategic work plan with the Colorado Geological Survey to prepare for potential Department of Energy funding solicitations in the 2008-2009 DOE funding cycle for geothermal exploration and development; and explore options, including possible public/private partnerships with DOE for an EGS pilot project in Colorado with assistance of the Colorado School of Mines.
While the U.S. Rockies holds a significant portion of the country's geothermal resources, the Rockies are far behind in terms of installed geothermal energy. In the Rockies, geothermal electricity generation is most widely used in Nevada. However, the state only has 346 MW of geothermal power capacity, according to the 2008 Colorado College State of the Rockies Report Card.
Researchers with the University of Nevada at Reno's Great Basin Center for Geothermal Energy and the Desert Research Institute earlier this year discovered direct evidence of an active geothermal system in the Teels Marsh area of Mineral County in rural Nevada.
The discovery is part of an ongoing effort by Great Basin Center for Geothermal Energy scientists to catalogue and record all of the state's geothermal assets. Scientists at the center estimate that northern Nevada holds 2,500 MW of geothermal natural steam, which could generate power for 2.5 million people.
According to Shevenell, the minimum number of known, developable geothermal resources in the near term with current technology under suitable political, regulatory and economic conditions is 2390 MW, and likely closer to 3200 MW.
If all 2390 MW from geothermal is brought on-line by 2015, geothermal would account for 25 percent to 33 percent of Nevada's needed electrical capacity in 2015, based on an assumed two percent increase in electricity demand per year starting with the 8200 MW statewide capacity reported for 2007 by the Nevada State Energy Office.
"Geothermal energy clearly has the potential to displace significant amounts of fossil fuels and provide Nevada with clean, indigenous, renewable power, improving our economy, quality of life and national security," said Shevenell.
Other parts of the region provide more geothermal resources. Counties in Montana and Wyoming hold the greatest opportunity; however, portions of these counties lie within the boundaries of Yellowstone National Park and will likely never be developed.
Technology
GEA released a two-part report, The State of Geothermal Technology, in November 2007 and January 2008.
In Part I: Subsurface Technology, author Mark Taylor noted that subsurface technologies must be improved, new exploration technologies developed and drilling costs significantly reduced to utilize most of the geothermal resource base.
Most hydrothermal resources developed in the U.S. have been found through subsurface manifestations such as hot springs. However, these types of resources are estimated to represent only a very small fraction of an incredibly large, "hidden" U.S. resource base. A cumulative capacity of 100,000 MW can be achieved by tapping into EGS systems in the U.S. over the next 50 years, according to a study released by the Massachusetts Institute of Technology in January 2007.
"Although geothermal and oil and gas drilling operations may seem interchangeable, there are significant differences. The geologic formations encountered and fluid flow rates required for commercial production cause geothermal drilling contractors to use different methods and tools than those used in oil and gas drilling."
"Some of these include training specialized crews, drilling to maximize well diameters to increase flow potential, and using several pieces of equipment altered to be effective in geothermal drilling projects," Taylor noted.
Despite the differences, potentially thousands of megawatts of unused geothermal energy from thermal fluids commonly co-produced from oil and gas wells exist. Development of technology to access these megawatts is starting to be done on a limited basis.
While the industry has made several technological advances that help drilling contractors cope with difficult drilling environments, further advances will allow them to reach their target depths with fewer problems and less cost.
"A major reason that many geothermal prospects go undeveloped is that they are too deep to be drilled economically. If advances are made that significantly reduce drilling costs, resources at previously uneconomical depths would then become feasible development prospects," Taylor concluded.
The State of Geothermal Technology Part II: Surface Technology, released in January, highlights new and underused geothermal technology that could boost the use of the renewable energy source within the U.S.
Non-traditional technology applications that have been considered, or are emerging that could further expand geothermal potential, include hybrid systems, which integrate another resource into a hydrothermal geothermal power plant, creating more electricity without expanding the use of the geothermal source.
Geothermal can be used in combination with biomass, combined heat and power or CHP - geothermal electricity plus a geothermal direct use application - geothermal heat pumps, and geopressured resources, which operate on both natural gas and geothermal fuel.
Enhanced geothermal systems and oil and gas co-production also could expand geothermal potential in the U.S.
Several surface technology applications look particularly promising for the future, including hybrid cooling. Air cooling will likely become the preferred cooling option in an increasingly water-constrained world, Kagel said.
"However, the relative inefficiency of air-cooled systems during the summer has proven in some cases to be a liability. Hybrid cooling systems seek to integrate the best of both systems, increasing seasonal efficiency while also reducing water use and aesthetic impact."
Other promising technological applications include incremental technology improvements. Small-scale improvements can be commercially implemented more quickly than larger, more revolutionary advances, and can be incorporated into existing designs with comparatively low risk.
Increasingly standardized, modular geothermal conversion systems also hold promise for future geothermal development. Modular components and subcomponents reduce costs because they can be pulled from off-the-shelf designs that are mass-produced. They allow developers to move ahead more rapidly with plant development and, once a plant is established, capacity additions.
Further research and development could make the separation of minerals from geothermal water, known as mineral recovery, a viable technology. Mineral recovery offers benefits such as reduced scaling and increased revenue.
The U.S. Department of Energy's Energy Efficiency and Renewable Energy (EERE) this year has evaluated the DOE-sponsored study, The Future of Geothermal Energy, which was conducted by a panel of independent experts led by the Massachusetts Institute of Technology. The study, which examined the potential of geothermal energy to meet future U.S. energy needs, was released in January 2007.
The MIT-led panel concluded that geothermal energy could provide 100,000 Mwe or more in 50 years by using advanced EGS technology, which are fractured, hot-rock reservoirs that have been engineered to extract heat by the circulation of water between injection and production wells.
The EERE's report this year, which reviewed the assumptions and conclusions of the MIT study, found that the study's conclusions about the amounts of investment needed to achieve competitiveness and produce 100,000 Mwe were not supported by the MIT study's assumptions and conclusions. EERE concluded that, to achieve the MIT study's large scale use of geothermal energy, significant advances are needed in site characterization, reservoir creation, wellfield development and completion, and system operation, as well as improvements in drilling and power conversion technologies.
"The DOE strategy is to leverage and build from current geothermal technologies and resources to develop the advanced technologies required for EGS, while at the same time generating benefits in the near-, mid- and long-term.
"This will require a systematic, sustained research and development effort by the Federal government in strong partnership with industry and academia to ensure full development of EGS," the EERE study reported.
Geothermal's global appeal
To date, geothermal resources in Canada are widely undeveloped. The University of British Columbia estimates that between 4,000 MW to 7,000 MW of geothermal energy potential exist in British Columbia alone, of which none have been tapped at this point.
While Canadian geothermal resources were studied in the 1980s, the diversity of other resources such as coal and hydro and strong oil and gas prices led companies to focus on these sources rather than alternatives such as geothermal.
Government policy also has been an obstacle to geothermal development in Canada. British Columbia is the only jurisdiction in Canada that has a geothermal lease agreement available. "If I wanted to get a lease for geothermal opportunity in Alberta it wouldn't available," said Craig Nunn, a geologist with the Canadian Geothermal Energy Association.
The picture is starting to change. The number of Canadian companies that do work in the U.S. in geothermal has become an issue for Canadian policymakers. Knowing that companies with knowledge of geothermal are choosing not to spend capital in Canada is an awakening for many involved in electricity power supply.
British Columbia has made development of renewable energy sources such as geothermal a priority with the introduction of a carbon tax.
Technological development presented another barrier in the past to geothermal. While flash steam and dry steam geothermal technology was studied in the 1970s, geothermal resources accessible through these technologies were just the "lowest hanging fruit on the tree."
A team from the UC Davis expects to begin drilling this summer as part of the Iceland Deep Drilling project, an international effort to learn more about the potential of geothermal energy.
Professors Peter Schiffman and Robert Zierenberg are working with Wilfred Elders, professor emeritus at UC Riverside, Dennis Bird at Stanford University and Mark Reed at the University of Oregon to study the chemistry that occurs at high pressures and temperatures two miles below Iceland.
Funded by the National Science Foundation, the university team will drill up to 2.5 miles (4 km) into the rock. It will be one of the three boreholes sunk as part of the Iceland Deep Drilling Project, which is supported largely by Icelandic power companies.
In Africa, the Kenyan government is increasingly focused on developing geothermal power due to the country's rising demand for power and the challenges posed by hydroelectric plants' vulnerability to climate and weather changes, according to Frost & Sullivan's Strategic Analysis of the Kenyan Electricity Industry.
A host of independent power producers (IPPs) are expected to invest in this power sector to exploit the country's 7,000 MW geothermal power potential. The nation has already developed 115 MW of this potential, and plans are underway to construct more geothermal power stations.
"While Kenya's robust economic growth is fuelling the demand for power, existing supplies are unable to meet demand, leading to acute power shortages and blackouts," said Moses Duma, a Frost & Sullivan research analyst.
"Furthermore, approximately 62 percent of Kenya's power plants use water as their major feedstock, leaving them prone to fluctuating water levels as a result of climate and weather variations."
However, two major restraints stand in the way of the Kenyan power industry, which is still in its developmental stage but has considerable potential for growth in the short- to medium-term. One barrier is the dominance of the state utility in power transmission and distribution.
Lack of project finance is an additional barrier to companies, and "even the Kenyan government lacks adequate financial resources to actualise the planned power project," said Duma.
"Even though energy resources are plentiful in Kenya, the infrastructure to transport, distribute, transform and efficiently utilise them is lacking."
Duma noted that the Kenyan government's immediate focus should be on improving tariff levels to attract investment from both local and international companies.
While the U.S.'s support for domestic alternative energy development is questioned, the U.S. government has been encouraging other countries to pursue geothermal development. America.gov reported earlier this year that the U.S. State Department's Bureau of Oceans and Environmental and Scientific Affairs is working to become more active in the African Alley Geothermal Development Facility (ARGeo) project to develop geothermal resources in the East African Rift Valley and is collaborating with the Chilean government on potential geothermal development.
ARGeo is an international organization that is active in Kenya, Ethiopia, Djibouti, Uganda, Tanzania and Eritrea. The East African Rift Valley system runs from the Red Sea to Mozambique and is called an active divergent rift valley because the continent is being pulled apart by plate tectonic forces. The geothermal potential of this system is up to 7,000 MW.
So far, no geothermal development has been undertaken in South America, but the government of Chile is interested. Chile has the region's largest number of historically active volcanoes. The Andes Mountains run the length of South America where the Nazca plate slides under the South American plate, producing many active volcanoes and a rich geothermal resource.
Western GeoPower in April announced it had recently opened geothermal operations in Chile with the incorporation of a wholly owned subsidiary, Western GeoPower SpA, and the opening of an office in Santiago. Western GeoPower also has submitted bids to the Chilean Ministry of Mines for the acquisition of three geothermal exploration concession in northern Chile that were recently presented for bidding.
Western GeoPower and its independent consultants, GeothermEx, have been conducting a technical review of the geothermal potential for Chile and a field reconnaissance of selected geothermal sites. The review identified several locations of significant resource potential through Chile, including concessions currently under bid at Pampa Lirima and Polloquere.
UK-based utility Scottish and Southern Energy Plc will invest up to US$29.6 million in cash to purchase a 20 percent stake in UK-based Geothermal International Ltd. (GI) from existing shareholders.
GI is a supplier of ground source heating and cooling systems, with extensive operations in the UK and Ireland and to a lesser extent in Europe. Since its establishment in 2000, GI has installed more than 1,300 ground source heat pump systems, amounting to over 90 MW of installed capacity, sized from 6 kW and 10 MW.
Ground source heat pump systems can be used to transfer energy between buildings and the surface crust of the plant, or surrounding air, providing a renewable energy efficient means of heating and cooling buildings.
SSE Chief Executive Ian Merchant said,"SSE is rapidly building a strong portfolio of clean energy businesses that cover almost every part of the renewable and alternative energy market in the UK. Geothermal energy has been an obvious missing piece in this portfolio and this deal fills the gap very effectively."
According to Geothermal International, ground source heat pumps, often referred to as GeoExchange or geothermal systems, have grown in popularity and acceptance in the UK.
Planning requirements, such as the 10 percent renewable requirement in London, and increased energy efficiency measures, such as Part L, have made ground source systems a key part of modern building heating and cooling solutions. Geothermal International has installed commercial ground source systems in schools, office buildings and homes throughout the UK.
Between 1984 and 1987, the British Geological Survey identified four Mesozoic basins which contained significant low-temperature geothermal resources above 40 degrees Celcius in Permian and Triassic sandstones: eastern England, Cheshire, Worcester and Wessex.
In France, Orly Airport announced in early April that its facilities would utilize geothermal energy to cut down on its heating bills. According to media reports, Orly-Ouest terminal, part of Orly-South, the airport's Hilton Hotel, and two business districts will be hooked up to the system from 2011. The project is expected to cost US$17.27 million. The neighboring towns of Orly, south of Paris, and l'Hay-les-Roses, currently use geothermal.
In New Zealand, Might River Power plans to spend US$353 million on the geothermal development proposed at Rotokawa, north of Taupo. The development would be the second power station at Rotokawa and, with 132 MW of generating capacity, would be the second largest geothermal station in the country.
Mighty River Power and Tauhara North No. 2 Trust, through the Nga Awa Purua Joint Venture, in March signed an engineering procurement contract with Japan's Sumitomo Corp. for construction of the power station. Work is scheduled to begin around May 1 and take approximately two years to complete. Mighty River Power hold 75 percent in the Nga Awa Purua Joint Venture; Tauhara North No. 2 Trust holds the remaining 25 percent.
The proposed development is part of a significant geothermal expansion program being undertaken by Mighty River Power in conjunction with its Maori partners and includes three other geothermal sites at Mokai, Kawerau and Nga Tamariki.
Iceland-based investment bank Glitnir has formed a joint venture with India's LNJ Bhilwara Group to develop geothermal power plants in India and Nepal. Glitnir will hold 40 percent in the 60-40 partnership, and also will file an application with the Reserve Bank of India to open a representative office in India.
Glitnir CEO Larus Welding stated, "This will encourage prospects for growth in India in the geothermal arena. India is a vast country and we believe there are a number of unexplored geothermal energy resources. These resources and the technology employed contribute to clean, rural-based and cheap energy sources."
Welding noted that Glitnir had successfully implemented a project in China, where expertise and sourced funding for the project was used to heat a district in the Xian Yang province in China.
"We believe similar projects can be developed in India. In addition, Glitnir's strategy is to have a local presence in all the major emerging markets with potential in the Glitnir industry focus. Following the establishment of our presence in China, India is the next logical destination."
Ormat Technologies Inc. Q1 2008 Earnings Call Transcript:
http://seekingalpha.com/article/76155-ormat-technologies-inc-q1-2008-earnings-call-transcript?source=yahoo
12:53AM Ormat Tech beats by $0.07, misses on revs (ORA) 52.50 : Reports Q1 (Mar) earnings of $0.24 per share, $0.07 better than the First Call consensus of $0.17; revenues rose 12.5% year/year to $69.4 mln vs the $76.4 mln consensus.
InPlay briefing.com May 6,2008
Western GeoPower Corp.: Geysers Well Demonstrates 10 MW Initial Capacity
Tuesday May 6, 2:06 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 6, 2008 -- Western GeoPower Corp., (CDNX:WGP.V - News)(Frankfurt:WE6F.F - News) a renewable energy development company, today announced that an eight hour multi-rate flow test carried out on completion of the WGP-1 well at The Geysers Geothermal Field in California has confirmed that the well is a strong producer, with an initial capacity of 10 MW (gross) and a forecast stabilized capacity of at least 7 MW (gross). The well will supply steam to the 35 MWe Western GeoPower Unit 1 plant, projected to start commercial operations in early 2010.
Well WGP-1 was directionally drilled to the east of the pad to a total depth of 8,410 feet (2,563 m) with numerous steam zones recorded between 5,400 feet (1,650 m) and bottom. Further deepening of the well was considered unnecessary. An eight-hour multi-rate flow test carried out by independent consultants GeothermEx, Inc. demonstrated an initial, unstabilized steam flow rate of about 161,000 lb/hr (72,100 kg/hr) at the design flowing wellhead pressure of approximately 80 psia. The rig has been skidded across the pad to immediately begin drilling well WGP-2 which is designed to intersect known productive zones to the north of the pad. Completion of WGP-2 is projected for July.
"We note with great satisfaction that the WGP-1 well is one of the strongest wells drilled at The Geysers during the past 20 years," said Dr. Subir Sanyal, President of GeothermEx. "In addition, the higher than expected static reservoir pressure encountered (at least 280 psia compared to 250 psia assumed for project design) provide encouragement that future wells may show higher capacity than had been anticipated throughout the Western GeoPower leasehold."
California-based GeothermEx is a recognized international authority in the evaluation of geothermal resources and has been involved in the development of all the producing geothermal fields in the United States and over 750 projects worldwide. Their knowledge of The Geysers geothermal field is extensive, having been associated with the development of the field for over 30 years.
"We are extremely pleased to report that the well's stabilized productivity is double our earlier expectations and the well has been completed one month ahead of schedule and considerably under budget," said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. "A review of earlier production records from the steam field suggests that the target zones for future wells may have similar potential to the well just drilled. If this is confirmed, and fewer wells are required to supply the plant, considerable cost savings may be realized."
Following completion of well WGP-2 and relocation of the rig to the next pad, isochronal tests will be conducted at both wells by Geothermex to assess their long-term productivity and the results will be used for reservoir modelling purposes. Current projections call for the drilling of five to seven additional production wells and one injector well, with the final number to be determined on completion of reservoir modelling. An existing well is being assessed for re-work and may be used as a second injection well. The drilling program is scheduled for completion in late 2009.
The Geysers geothermal field, located 75 miles north of San Francisco, California, is the largest producer of geothermal electricity in the world. Commercial geothermal power has been generated continuously at The Geysers field since 1960, the present generation level being about 900 MWe of clean, baseload electricity. Western GeoPower's Unit 1 project is situated in the south-western region of The Geysers field in Sonoma County.
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 California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of Western GeoPower Corp.
Kenneth MacLeod, President & CEO
Raser to Hold Groundbreaking Ceremony and Press Conference for Utah Geothermal Power Project
Monday May 5, 8:45 am ET
Raser to Construct First Utah Geothermal Power Plant in 20 Years
Senator Orrin Hatch to Participate in Ceremonies for Renewable Energy Project
PROVO, Utah--(BUSINESS WIRE)--Raser Technologies, Inc. (NYSE Arca:RZ) announced today that they will hold a groundbreaking ceremony for beginning the construction phase of the first geothermal power plant built in Utah in 20 years. The groundbreaking ceremony in Beaver County, Utah will be followed by a press conference at the Energy and Geoscience Institute (EGI) building on the University of Utah campus in Salt Lake City, Utah. Senator Orrin Hatch, US Senator from Utah, has accepted Raser’s invitation along with state and county government officials to participate in the groundbreaking ceremony and press conference and will be available to discuss Utah’s efforts to reduce emissions from power production facilities and its efforts to meet the state’s newly legislated renewable portfolio standard to increase the amount of renewable power. The groundbreaking ceremony is scheduled for May 9, 2008, at the power plant project site in Beaver County at 11:00 a.m. local time. The press conference is scheduled for 2:00 p.m. local time at the offices of EGI on the University of Utah’s campus at 423 Wakara Way, Salt Lake City, Utah.
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Raser previously announced the initial results of drilling the geothermal production well on the site and stated that the results suggested sufficient heat and flow of geothermal fluids to produce the planned 11 megawatts of geothermal power. Raser also recently announced a power purchase agreement to sell the power produced by the plant to the City of Anaheim and anticipated delivery of the power before December 15, 2008.
“We are pleased with the progress we have made on this geothermal power project and anticipate the completion of the project within the next six months,” stated Brent M. Cook, Raser’s Chief Executive Officer. “Our geothermal power plant is designed to provide baseload renewable energy with virtually no harmful emissions. We have already begun to take delivery of the UTC power generation units and expect that the remainder will be ready once site preparations are completed.”
About Raser Technologies
Raser (NYSE Arca:RZ) is a publicly-traded, environmentally-focused technology licensing and development company operating in two business segments. Raser’s Power Systems segment is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s Symetron™ technology developed internally by its Transportation and Industrial Technology segment. Raser’s Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications. Further information on Raser may be found at: www.rasertech.com.
Ormat Should Benefit from the Ethanol Backlash
by: Aaron Katsman posted on: April 17, 2008 | about stocks: ORA
Edit: click the link to read 11 comments on article
With people rioting all over the world because of surging food prices, we have started to see a backlash against the cause of the food inflation - ethanol. As global warming alarmists convinced legislators and the media that we need to pour money into ethanol in order to solve the global warming “crisis,” and use it as an alternative to crude oil. So backed by government subsidies, farmers changed their crops over to grow corn, thus creating shortages of other food stuffs and soft-commodities. With smaller supplies, the prices have soared, and now the developing world is taking it on the chin, as citizens are unable to purchase even the most basic food.
What we are starting to see is a backlash against this. The media has started to run stories about the wisdom of ethanol. Better late than never, I guess. The fact that it takes more energy to produce it than it does produce. It also uses a large amount of water in the process, and it's not as if the world is full of spare water.
Hopefully common sense will prevail and we can put an end to the ethanol nonsense. If so, one company that could profit is Ormat Technologies (ORA). The Israelicompany specializes in geothermal and recovered-energy-based power plants. With crude oil hovering around $114/barrel, alternative energy is very much still in focus. But far from a dream, Ormat is a real company with real earnings and real technology.
The company has been announcing deal after deal, and Wednesday was no exception. It announced that a Minnesota cooperative agreed to a 20-year electricity purchase agreement with one of Ormat’s units.
If you are looking for a way to potentially play alternative energy, then forget about ethanol, and spend the time doing some research on Ormat.
Disclosure: The author’s fund holds a position in ORA, he has no position in any other stock mentioned as of April 16, 2008.
http://seekingalpha.com/article/72657-ormat-should-benefit-from-the-ethanol-backlash?source=yahoo
Folks - if you have links that you think are helpful for coming up to speed on GT, please let me know and I will add them to the iBox.
Tim,
I came across this article today regarding GT in Reno, it may be related to your previous work there:
http://siliconinvestor.advfn.com/readmsg.aspx?msgid=24482981
The earthquake activity going on in Reno made me wonder about that as a risk for GT plants. Plants are typically located in areas of tectonic activity as that's where the heat comes closer to the surface. But it seems to me that if the earthquake is severe enough, it could be a problem for the pipelines/gathering systems. I will have to check in to this. The power plant itself I would think should be able to withstand a fair amount of vibration.
Article on GT in the US:
04.03.2008
The Great Forgotten Clean-Energy Source: Geothermal
The U.S. uses less than 1 percent of our available geothermal energy.
by Prachi Patel-Predd
If we could extract all the geothermal energy that exists underneath the United States to a depth of two miles, it would supply America’s power demands (at the current rate of usage) for the next 30,000 years. Getting at all that energy is not feasible—there are technological and economic impediments—but drawing on just 5 percent of the geothermal wealth would generate enough electricity to meet the needs of 260 million Americans. The Department of Energy’s National Renewable Energy Laboratory (NREL) asserts that reaching that 5 percent level, which would produce 260,000 megawatts of electric power and reduce our dependence on coal by one-third, is doable by 2050.
So what is holding us back? Tapping geothermal energy means facing the harsh realities of thermodynamics: Typically, geothermal electricity is generated when hot water or steam underground is piped to the surface to drive a turbine, usually through heating an intermediate working fluid that actually turns the turbine’s blades. The turbine drives a dynamo that then produces the electricity. Crucially, the temperature of the piped-up water dictates the efficiency of a turbine-based system: the hotter the better, with a minimum of about 200 degrees Fahrenheit needed. But there is a limited number of geothermal hot spots that naturally contain water and that heat it to such high temperatures at accessible depths. Probably the best example of one in the United States is The Geysers. In a valley 72 miles north of San Francisco, steam billows from the earth’s surface. (This prompted the first European visitor to the site, in 1847, to believe he had discovered the gates of hell.) An elaborate array of gleaming metal pipes brings steam up from underground to drive turbines that generate 850 megawatts of electricity.
California, Nevada, Idaho, and Oregon all have enough high-temperature hot spots to potentially meet a significant portion of their electrical demand—as much as 60 percent in the case of Nevada—but rarely are the temperatures as high as at The Geysers, which produces steam of 400 degrees and hotter. Most of the time, developers have to look as far as six miles below ground to locate hot, flowing liquids. Finding suitable drill sites can be a big headache.
Doug Glaspey, chief operating officer of U.S. Geothermal, an Idaho-based company that just finished building a 13-megawatt geothermal electrical plant in southern Idaho, says he wishes he had “X-ray vision, so I could see where the reservoirs are. The highest-risk part of this business, bar none, is searching for reservoirs. Drilling a well costs two to three million dollars per well. If it fails, you got nothing.” Moreover, once companies hit a good hot spot, they still have to set up a power plant or a heating system, which requires big up-front costs and multiple wells. Glaspey estimates that it costs “$3.5 million to $4 million per megawatt” to build a geothermal power station.
In addition, geothermal power plants have energy efficiencies of just 8 to 15 percent, less than half that of coal plants. High up-front expenses plus relatively low efficiency makes the cost of geothermal electricity about double that of coal, which sells for around five cents per kilowatt-hour.
Gerald Nix, recently retired geothermal technologies manager at the NREL, believes that improving exploration and drilling technologies could make geothermal power cheaper than coal, however. Current attempts to refine these technologies fall under the banner of engineered geothermal systems (EGS), which can squeeze heat out of spots where the rock is not porous or permeable enough for water to circulate, or where there is not enough water in the first place. EGS uses techniques such as reopening old fissures in the rock, and then pumping water through the fracture. EGS could contribute at least 100,000 megawatts to the U.S. geothermal power budget by 2050, according to a 2006 report, “The Future of Geothermal Energy,” written by a team led by MIT chemical engineering professor Jefferson Tester. What is desperately needed to advance EGS, Tester says, are large-scale demonstration projects. “It’s not as if we don’t know how to drill holes and fracture rocks,” he says, “but we have to demonstrate EGS on a scale that would be useful for commercial enterprise.”
Uses for geothermal energy go beyond generating electricity:Geothermal sources not hot enough to make electricity efficiently can heat buildings by circulating water through pipes. This country has a swath of such lower-temperature hot spots. Draw a line from North Dakota to Texas, and nearly every state west of that line has sources with temperatures of at least 200 degrees Fahrenheit.
............more
http://discovermagazine.com/2008/apr/03-the-great-forgotten-clean-energy-source
Article regarding GT potential in Latin America:
ENEL eyes volcanic Latin America for Geothermal growth
Fri Apr 18, 2008
By Ian Simpson
MILAN, April 18 (Reuters) - Italian power company Enel SpA (ENEI.MI) is targeting Latin America and other foreign markets as it looks to boost output from geothermal energy by a quarter and save on carbon dioxide emissions, executives said on Friday.
ENEL, Europe's biggest producer of geothermal power, is also exploring new technology that can make its power plants run at lower temperatures from geothermal underground sources, they said.
Latin America, rich with volcanoes and hot springs, is a natural spot to invest as Enel expands from Italy, Roberto Deambrogio, Enel's head of international renewable energy development, said in a telephone interview with Reuters. "Latin America is a key area for us, because of course you have to go where the resources are," said Deambrogio, who was joined on the call by Ruggero Bertani, head of geothermal development.
Geothermal is earmarked for a third of Enel's planned 1.1 billion euros in spending on renewable resources in Latin American through 2012. Enel, which produces about 10 percent of world geothermal energy, is investing in projects in Nicaragua and in El Salvador, with a 200 megawatt plant. It is exploring sites in Guatemala.
It is also involved in four projects in Chile, including drilling at an altitude of more than 4,000 metres (13,200 feet) in the Andes Mountains, Deambrogio said.
"Of course, the higher the altitude it is, the harder it is to drill," Deambrogio said.
STEAM HEAT
ENEL also is in the early stages of using new lower-temperature binary cycle technology in Greece and Slovakia, he said. The push abroad is part of Enel's goal of boosting its geothermal capacity to 837 megawatts in 2012 from 678 megawatts last year.
The state-controlled company entered the U.S. geothermal market last year and bought AMP Resources LLC with 150 megawatts of planned capacity.
Although geothermal makes up less than 3 percent of Enel's capacity, it plays a role in cutting the company's emissions of heat-trapping carbon dioxide. Besides powering a quarter of the Tuscany region, Enel's 30 geothermal plants in Italy hold down its carbon dioxide output by 3.5 million tonnes a year. That capacity "is very important for Enel as a company to reduce the emission of C02", Deambrogio said.
Enel is working with Massachusetts Institute of Technology and Milan's Polytechnic University to develop new binary cycle technologies. They use underground heat to warm liquid in a closed cycle and drive a turbine.
ENEL wants to come up with a liquid to replace such mixtures as the ammonium and water now in use. The new liquids, known as super criticals, could be heated to drive turbines at lower temperatures, thus opening new geothermal fields for use.
"Basically, changing those liquids you can increase the efficiency significantly. That's one of the things we are doing," Deambrogio said.
Bertani, the head of geothermal development, said Enel had spent 30 million euros to install equipment that captures mercury and hydrogen sulphate -- the gas that gives hot springs their rotten-egg smell -- emitted at geothermal plants and reinject them deep into the earth.
"There is nothing left on the surface, nothing in the earth, nor in the water," he said.
(Editing by Erica Billingham)
In regard to the recent rig test announcement at The Geysers:
"The high productivity of the well suggests significant cost savings may be realized through the drilling of fewer wells than anticipated if a similar successful outcome is repeated in future wells."
The Western GeoPower Unit 1 plant is projected to start commercial operations in early 2010. Previous estimates by GeothermEx suggested a requirement for nine or ten wells at an average of 3.66 MW per well, however, the number will be revised downwards should future well capacities continue to exceed expectations.
This could be very good news. I believe the drilling costs are about $4MM/well. So if they can drill fewer holes, that will be a big help towards decreasing the required CAPEX.
Chilean office opened - this is a news release from a couple of weeks ago but I thought it was worth posting. I went back and read it after listening to the audio archive from the 4/10 conference. There's huge GT potential in Chile and the copper companies there are anxious for more power. Mining and processing copper requires an enormous amount of electricity. A lot of their power is from hydro and it hasn't been raining much lately. While that may be a temporary phenomenon, it has a real impact on mining operations, so I am sure they would greatly welcome another power generation source that is not dependent on the weather.
Western Geopower Launches Operations In Chile
VANCOUVER, Canada, April 10, 2008, TSX Venture Exchange Trading Symbol: WGP – Western GeoPower Corp., a renewable energy development company, today announced the launching of operations in Chile, South America, with the incorporation of a wholly-owned Chilean subsidiary, Western GeoPower SpA and the opening of an office in Santiago. In conjunction with the launch of operations, Western GeoPower has submitted bids to the Chilean Ministry of Mines for the acquisition of three geothermal exploration concessions in the north of Chile that were recently presented for competitive bidding by the Ministry.
Over the past six months, Western GeoPower and its independent consultants, GeothermEx, Inc. of Richmond, California have been conducting a technical review of the geothermal potential for Chile and a field reconnaissance of selected geothermal sites. The review has identified several locations of significant resource potential throughout Chile, including the concessions currently under bid at Pampa Lirima and Polloquere. Western GeoPower has also identified a pressing need for new power in several sectors and regions of the country, resulting in a strong potential for power off-take by both the northern grid and by regional major mining operations.
Chile has recently been experiencing an electricity supply shortfall and the growing economy demands substantial new capacity. Recent pronouncements by the Government of Chile together with the adoption of a new Renewables Resources Law which requires that 5% of new grid power must be sourced from Renewables by 2010 and 10% by 2013 has opened the door for geothermal energy to establish a significant presence over the next 5 year period.
“To demonstrate our commitment to becoming a significant participant in the Chilean electricity sector, Western GeoPower has assembled a strong team to run the operations in Chile,” said Kenneth MacLeod , President and CEO of parent company Western GeoPower Corp. “The worldwide geothermal expertise that GeothermEx brings to the relationship makes the collaboration between Western GeoPower and GeothermEx a strong contender for assuming a leading role in geothermal development in Chile.”
The management team for the Chilean subsidiary is comprised of Mr. Kenneth MacLeod as Chairman; Mr. Thomas S. Drolet as CEO; Mr. Michele d’Apote as General Manager (Gerente General) of all in-country operations, and Mr. Luis Cambiaso as Manager of Social Policy (Gerente Responsabilidad Social Empresarial). The office is located at Nueva Tajamar 481, Torre Norte Of. 901, Los Condes, Santiago, Chile (tele: +56-2-2443301).
Kenneth MacLeod is President and CEO of parent company Western GeoPower Corp. and has over 27 years experience in the management & finance of mining, oil & gas and geothermal industries on three continents. Since 2001, Ken has focused on the development of Western GeoPower’s projects in Canada and the United States.
Thomas Drolet is a Director of parent company Western GeoPower Corp. and has 39 years experience as a power industry executive. Tom is a former President and CEO of Ontario Hydro International, where he directed all aspects of marketing, project management, and operations with electrical utilities in over 40 countries worldwide. He also worked with American Electric Power (largest operating USA Utility) and DTE Energy Technologies, Inc. on International power M&A activities as well as generation technology/marketing/ sales activities.
Michele d'Apote has been working in the Renewable Energy field in Chile for 4 years . He was the co-founder of Green Energy, a Chilean company representing a diverse group of companies including geothermal turbine manufacturers, Renewable Energy investors and Carbon Market s management personnel. During this time Green Energy developed a pipeline of over 30 projects with a cumulative investment potential exceeding US$400 million. Michele was educated in Economics and Administrative Sciences at the Universidad Católica de Chile.
“Chile has one of the largest undeveloped geothermal resources base in Latin America,” said Michele d’Apote, General Manager of Western GeoPower SpA . “The current and projected energy supply imbalance existing in various parts of the country underscores the need to develop new sources of secure, base-load generation to sustain the ongoing increase in copper production and an electricity-dependent population.”
Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable, base-load electricity generation. The Company is developing The Western GeoPower Unit 1 geothermal power plant at The Geysers Geothermal Field in California, United States and the South Meager Geothermal Project in British Columbia, Canada.
On behalf of Western GeoPower Corp.
“Kenneth MacLeod”
Kenneth MacLeod, President & CEO
Audio archive of Ken MacLeod presenting at the Jacob & Co. Renewable Energy Conference on April 10th, 2008:
http://events.onlinebroadcasting.com/jacobsecurities/041008/frameset.php?player=win&file=westerngeo&co=westerngeo&co_item_id=13
They holes were abouty 3500 feet deep, and we capped them- I was not privy to what the use was, but I think it was geothermal heat
Hi Tim - would be interested to hear more about the GT work you did back in the day. The Geysers project in California is about 208 miles WSW of Fernley, so close, but not all that close. Were you drilling GT wells for power generation or some other way of using the heat?
fwiw, Back in the early '80s, we put some geothermal wells near Fernley. It is about 30 miles east of Reno- and may be near the area this company is working.
http://en.wikipedia.org/wiki/Fernley,_Nevada
Hi xanadu90 - thanks for your post. I would welcome posts on other companies as well. I am new to geothermal and am still getting up to speed on it. Geothermal, at least for power generation, is not applicable everywhere. As I understand it, you need to be in an area where the heat from the core (magma? I forgot my Earth Science 101) is close enough to the surface to generate hot water or steam. Iceland uses geothermal to provide a very large percentage of their power generation needs. Anyway, WGP.v is focusing on the "Ring of Fire" which explains the locations they have chosen in BC, California and Chile.
WGP.v is a young company compared to its peers, but I think they've been going at this since 2001, so they do have some history. I was also interested to learn that an Iceland-based company now holds about 27% of the company. Those guys have deep GT experience, so I was glad to see them have so much confidence in WGP.v. Here is an excerpt from the news release regarding the most recent private placement:
The entire private placement of 25,000,000 shares of Western GeoPower at $0.25 per share for proceeds of $6,250,000 has been purchased by one strategic investor, Iceland-based geothermal developer, Geysir Green Energy. The shares will be subject to a four month hold period ending December 30, 2007. No commissions were paid with respect to the private placement. Following this transaction, Geysir owns 34,333,334 common shares of Western GeoPower, representing approximately 18.8 per cent of Western GeoPower’s outstanding common shares, and 9,333,334 warrants exercisable to purchase one common share of Western GeoPower at $0.35 per share.
Geysir Green Energy was formed in early 2007 with a mission to become a leading investor in geothermal power projects. Geysir is pursuing expansion through mergers and acquisitions and the development of new projects. Well capitalized to realize on its goals, Geysir has a suite of directors, management and technical staff with considerable experience in geothermal funding, development and operations. Geysir is investing in the development and construction of geothermal plants, acquiring interests in geothermal plants currently owned by power utilities and participating in the privatization of energy companies in various parts of the world.
“Our purchase of an equity interest in Western GeoPower fits perfectly with our plan to be a participant in the largest energy market in the world – the United States,” said Mr. Margeirsson. “We look forward to assisting Western GeoPower in expanding its capacity to acquire and develop additional projects.”
Hello tsl444. Thanks for setting up this board. We could start gathering up all kinds of information about geothermal energy in one place, so everybody interested in this sector can get usefull information from here.
Geothermal energy is very popular in Europe - Germany, Austria and the Scandinavian countries use all stages of geothermal heating/cooling/electricity producing systems from single familyhouse equipments to big power plants. I have a hunch that this alternative energy is not yet widely known in North America, so it has a long way to go.
WGP.v is a young company still in its infancy, but has a very promising future operating in rich geothermal areas in USA and Canada.
There are other geothermal power companies, some already producing - Calpine, Ormat, US Geothermal etc. - , where more information can be found about this sector.
Western GeoPower Corp.: Geysers "Rig Test" Indicates Commercial Well
Thursday April 24, 9:00 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2008) - Western GeoPower Corp. (TSX VENTURE:WGP - News; FRANKFURT:WE6.F - News), a renewable energy development company, today announced that the "rig testing" carried out by independent consultants GeothermEx, Inc. on the WGP-1 well at the Western GeoPower Unit 1 project at The Geysers Geothermal Field in Northern California indicates that the well is a strong producer with an initial steam flow rate of 140,000 lb/hr (63,500 kg/hr) at a wellhead pressure of 137 psia, with a static reservoir pressure of at least 279 psia. Drilling of the well continues and flow testing will occur on completion of the well.
Full release:
http://biz.yahoo.com/ccn/080424/200804240457167001.html?.v=1
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Welcome to the iHub board for Western GeoPower (WGP.V; WGPWF)
**Note: All Information regarding company status, contacts, news, and all other information related to WGP.V will come from the companies website**
Company Corporate Description
Western GeoPower Corp. (WGP) is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable baseload electricity generation. The Company holds 100% interests in the Unit 15 Steam Field located in The Geyser Geothermal Field in California, United States and in the South Meager Geothermal Project in British Columbia, Canada. The Company’s California geothermal leases are administered through wholly-owned subsidiary Western GeoPower, Inc., incorporated in California. The British Columbia leases are administered through wholly-owned subsidiary Meager Creek Development Corp., incorporated in B.C. Since late 2003, the Company has raised Cdn. $57 million toward proving the commercial viability of its projects through extensive technical programs involving drilling programs, geochemical assessments, environmental and socio-economic studies, and consultations with government agencies and community stakeholders.
Projects:
Unit 1 - The Geysers: Drilling on production wells underway, seeking project financing Q2 2009, commercial generation scheduled for 2010. www.geopower.ca/geysersdesc.htm
South Meager: Confirmation drilling and initial well testing completed 2004-2007, the Company is proceeding with a Feasibility Study and preparation of an Application for an Environmental Assessment Certificate (Application). www.geopower.ca/meagerdescription.htm
Western GeoPower Links:
Western GeoPower website - www.geopower.ca/index.htm
Current PPT Presentation (June 2009) - www.geopower.ca/presentations/20090615CorpPresentation.pdf
Q12009 Interim Consolidated Financial Statements - www.geopower.ca/quarterlies/WGP_QTR1_31March2009.pdf
Investor Relations:
Bill Gee, Investor Relations
Western GeoPower Corp.
Telephone: 1-604-662-3338
Toll Free: 1-866-662-3322
28 May 2009 - Gudmundur F. Sigurjonsson has been appointed a director of the company. www.marketwire.com/press-release/Western-Geopower-Corp-TSX-VENTURE-WGP-995953.html
10 May 2009 - WGP announced the acquisition of approximately 3,000 acres of private geothermal leases with a confirmed high-temperature geothermal reservoir, at South Brawley, in Imperial County, California. pr-canada.net/index.php
Background Information on Geothermal:
Introduction To Geothermal Power Slideshow: geothermal.marin.org/GEOpresentation/sld001.htm
Geothermal Education Office - geothermal.marin.org/
Charts:
Daily status chart.
WGP Comparison to the majority of micro cap geothermal companies operating in North and South America with Ormat listed as well.
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