Power plants currently delivering nearly 50 MWs NET
U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, is pleased to provide this 2012 review and planned milestones moving forward thru 2013. During 2012, the Company’s management and operating teams were focused on improving operations at Raft River, Idaho and advancing both the San
Emidio, Nevada and Neal Hot Springs, Oregon projects into commercial operations. Commercial operations were successfully achieved at San Emidio in May 2012 and at Neal Hot Springs in November 2012.
Both development projects experienced construction delays due to the innovative use of existing technology in a novel configuration. These innovations have successfully produced the geothermal power industry’s first commercial, supercritical organic rankine cycle binary power plant using R134a as a motive fluid. R134a is a non flammable, non toxic compound used in the power cycle. The two projects have successfully moved non-commercial, significantly enhanced technology to commercial viability and are now generating electricity. The performance tests of the innovative plants showed that they produce significantly more electrical power than
originally forecast. Due primarily to the colder winter temperatures, current total output of net base load power to our customers recently was 49 MW with San Emidio at 9.4 MW, Neal Hot Springs at 29.7 MW and Raft River at 9.9 MW.
Daniel Kunz, CEO and Director said, “With one of the best development and operating teams in the business, we overcame a number of bureaucratic, capital market, and technical obstacles to successfully achieve our goals for 2012. In addition to achieving sustainable cash flows, revenues and earnings from the three operating power projects, we have ambitious technical and development goals for 2013.”
2012 Notable Achievements:
– Approval of a 19.9 Megawatt power purchase agreement (“PPA”) for San Emidio
– Successful completion of well and pump repairs at Raft River
– Mechanical completion of module 1 at Neal Hot Springs
– Strategic investment by Lincoln Park Capital
– Achieved commercial operations at San Emidio
– Mechanical completion of module 2 at Neal Hot Springs
– Signed a binding 50 MW Memorandum of Understanding for 15 year PPA for El
– Increased power output rating from 8.6MW to 9.0MW at San Emidio
– $10.7 Million Cash Grant received at San Emidio, $1.0 million pending
– Achieved commercial operations at Neal Hot Springs
– Strategic institutional investors buy $4.37 million stake
Operating and Development Goals for 2013:
– Close long term financing for takeout construction loan for San Emidio
– Expand San Emidio to 10 MW net output with transmission upgrade and existing higher temperature well
– Close construction loan for Neal Hot Springs
– Apply for and receive the 30% ITC cash grant at Neal Hot Springs
– Complete the sale of and receive $7.4 million Oregon tax credit at Neal Hot Springs
– Receive $1.0 million remaining ITC cash grant at San Emidio
– Complete equity calculations for Enbridge at Neal Hot Springs
– Evaluate installation of solar power for parasitic load at Neal Hot Springs
– Receive 10% ITC cash grant for well improvements at Raft River
– Drill production wells to complete exploration grant at San Emidio
– Make a go or no go construction decision for second unit at San Emidio
– Complete PPA for El Ceibillo
– Close equity partner arrangement for El Ceibillo
– Receive environmental permits for El Ceibillo
– Complete geophysical surveys and reservoir confirmation drilling for El Ceibillo
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding the ability to complete the offering and the use of proceeds of the anticipated offering. These statements are based on U.S. Geothermal Inc.’s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management’s expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management’s expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the Toronto Stock Exchange do not accept responsibility for the adequacy of this release.
Source: U.S. Geothermal
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